Transfer Pricing and Intangibles

S. 77Attribution of intangible-related returns – panel discussion

Below is a summary of the panel discussion on Session 2.The summary was composed by Mag. Florian Navisotschnigg, BSc. (WU) teaching and research assistant at the Institute for Austrian and International Taxation at WU.

Advisor: The final report on BEPS Action 8 was undertaken under the heading “Aligning Transfer Pricing Outcomes with Value Creation”. Yet, there is hardly any definition on what value creation is. Now, we can see in practice a lot of emphasis is put on understanding what supply chain, RA(S)CI, and VCA are, but I think the institutional framework that the OECD is trying to bring forward is slightly different. Even under the new framework of Chapter I and Chapter VI, the application of a principal model (central entrepreneur) is still possible because the two concepts – risk management and the financial capacity to assume the risk – allow centralizing risk as a driver of return and justify an attribution of income to it. However, a factor that often creates tension with tax administrations is the role of t...