Resolution of International Transfer Pricing Disputes: A Non-Starter, Despite Beps
Posted: 10 Jan 2023
Date Written: November 3, 2022
Abstract
The OECD’s initiative under BEPS Action 14 is a welcome step towards minimizing international tax disputes (including those relating to transfer pricing adjustments by way of administrative measures through larger international cooperation). However, several legal, conceptual and practical issues remain unaddressed. This article intends to explore whether the measures recommended under BEPS Action 14 are adequate to bring improvement to current dispute resolution mechanisms, especially with regard to post-BEPS changes in transfer pricing policy. Secondly, it also aims to explain how the unaddressed legal, conceptual and practical issues may hinder achieving the stated objective. The author restricts the discussion to only international transfer pricing-related disputes at this stage although several discussions pertain to cross-border tax disputes in general.
Full-text Paper
Keywords: transfer pricing dispute resolution, BEPS Project (OECD), transfer pricing adjustment, tax treaty, MAP, arbitration
JEL Classification: K33, K34
Suggested Citation: Suggested Citation