Value Chain Analysis (VCA) 'Survival Kit'

The year 2016 has been a bumpy ride for many corporations having to tackle multiple conflicting unilateral regulations as the implementation of BEPS gains further stronghold across the globe.

Therefore, keeping in mind the imminent need for clarity on preventive actions to be taken by corporations, TPA Global organised a conference in Amsterdam last week on 'Value Chain Analysis - The BEPS Generation of Functional Analysis'.

The conference was met with a spirited response from over 80 participants arriving from as many as 20 countries. After making the connect that 'a full transparency on tax matters' would require a complete analysis of the value chain of a company in order to issue an 'in control' statement by in-house heads of tax/transfer pricing to their CFOs, a TPA Global staffed panel - with Indian, Chinese, German and Dutch participants - presented three standard techniques that TPA Global uses to analyse a value chain for tax and transfer pricing purposes. Hans van der Hurk (Maastricht University) and Herman Speyart (NautaDutilh) then addressed the 'state aid' cases under attack by the EU Commission, thereby providing the EU law and EU tax perspectives on value chain analysis.

During the post-lunch session, another panel comprising of Carolina Graterol (Rosen Group), JD Choi (Tax Technologies Inc.) and Raymund Gerardu (TPA Global) drew the attention of the audience to the issues pertaining to corporate governance on tax matters. This was immediately followed by the presentation of an example of a multi-channel business model by Orlando Fijma (former CFO, Bose) that highlighted key elements that form the value chain of a business.

Finally, in a panel discussion with most speakers of the day, the key concerns of corporations on conducting a value chain analysis were discussed and benefits of such analysis (in addition to conforming to compliance norms) were presented. The conference concluded with an assessment of the four boundaries placed on the business models i.e. via EU law, EU tax and the EU Commission and an OECD standards on transfer pricing and the impact of such boundaries on some well-known business models - such as the Apple and Google case.

We heartily thank everyone who worked towards making this event a success and look forward to many more collaborations! 

VCA 'Survival Kit'

TPA Global is also pleased to share with you three very recent articles, which can be considered your 'survival kit' in case you will be dealing with a 'value chain analysis'. The 'survival kit' comprises of three articles:

  • addressing the corporate governance aspects on tax matters, including a summary of recent tax regimes which keep legal representatives accountable for non-BEPS set ups;
  • addressing the mandatory VCA documentation in China effective as per January 1, 2016; and
  • about the 'slicing of the pie', which provides a quantitative model on how your value chain could be allocated to the 'people functions' involved in the lead 'value creation' processes.


Value Chain Analysis (VCA)

TPA Global has been conducting value chain analyses for over 10 years. With over 1000 professionals trained in value chain analyses, TPA Global is one of the world leaders in offering industry-specific value chain solutions!

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