TPA Global e-Archive

Recently, Transfer pricing audits have become a significant part of the tax audits carried the French tax authorities. The DVNI is the specific department in charge of the control of multinational companies (as from €M 150 of turnover). DVNI has 500 employees and carries out around 1,200 tax audits per year. With a total amount of tax adjustments of around €20 Billion per year, the DVNI represents € 5.8 Billion per year among which €2 Billion corresponds to transfer pricing tax adjustments.  Transfer pricing adjustments affect not only corporate income tax but also trigger withholding taxes on the deemed distributed profits and the local tax adjustments.

Key Highlights of the Webinar

With this objective in mind, we invite you to an informative webinar where we will discuss the following:

• Transfer Pricing documentation requirement in France
• Main approach used by the French tax authorities for price checking
• Tax adjustments – global settlement: process and potential outcomes
• Transfer pricing documentation requirements
• Transfer pricing vs. Thin capitalization rules: Approaches used by the DVNI and the regional Paris and Paris region (Dircofi) tax squads
• The Google case: anti-abuse provisions and criminal charges
• The perspectives of the transfer pricing tax audits in France: “Unified Approach” under Pillar 1 – OECD

Do uncertain tax positions as disclosed in your financial accounts under IFRS or US GAAP create reportable transactions under DAC – 6 and vice-versa?

Both accounting standards and DAC – 6 are putting disclosure requirements on taxpayers for perceived “aggressive” tax arrangements, however the background and rational of these rules differ. Under DAC – 6, tax authorities for more transparency around very specifically defined (ie, Hallmarks) transactions whereas the accounting standard board wants to ensure that all (tax) risks are accounted for to avoid misleading investors and other relevant stakeholders.

Given these different goals pursued, the disclosures under each system are different and thus miss-alignment is programmed. Under DAC -6 specific transactions are targeted for disclosure to tax authorities, whereas accounting standards capture every tax related risk and require disclosure to all stakeholders.

Key Highlights

With this objective in mind, we invite you to an informative webinar where we will discuss the following:

• An overview of how the tax treatments (positions) are made under IFRIC 23 and ASC 740;
• An overview of the mandatory disclosures required to be made under DAC6;
• Discussion on whether an uncertain tax position will lead to a DAC 6 disclosure and examples of such disclosures

Do uncertain tax positions as disclosed in your financial accounts under IFRS or US GAAP create reportable transactions under DAC – 6 and vice-versa?

Both accounting standards and DAC – 6 are putting disclosure requirements on taxpayers for perceived “aggressive” tax arrangements, however the background and rational of these rules differ. Under DAC – 6, tax authorities for more transparency around very specifically defined (ie, Hallmarks) transactions whereas the accounting standard board wants to ensure that all (tax) risks are accounted for to avoid misleading investors and other relevant stakeholders.

Given these different goals pursued, the disclosures under each system are different and thus miss-alignment is programmed. Under DAC -6 specific transactions are targeted for disclosure to tax authorities, whereas accounting standards capture every tax related risk and require disclosure to all stakeholders.

Key Highlights

With this objective in mind, we invite you to an informative webinar where we will discuss the following:

• An overview of how the tax treatments (positions) are made under IFRIC 23 and ASC 740;
• An overview of the mandatory disclosures required to be made under DAC6;
• Discussion on whether an uncertain tax position will lead to a DAC 6 disclosure and examples of such disclosures

Value Chain Analysis (“VCA”) has become a burning topic for discussion. It is of high importance, companies to understand how to conduct a Value chain analysis in order to support their transactions and define the value creation processes. Conducting a VCA analysis plays a vital role on supporting TP documentation, negotiation, communication to the board and other stakeholders.

We are all aware that there is a need for both qualitative and quantitative analysis, in order to identify the key allocation keys. In order to make this analysis more objective there are three (3) anchors that need to be followed:

• Regulatory anchor countries regulation requirements
• Industry anchor value drivers that have an economically significant impact on EBIT
• BEPS compliant anchor BEPS criteria for a proper quantification of carve-outs and allocation to countries / legal entities

In this regard, an industry-wide analysis needs to be performed in order to enhance the robustness of the outcome. This process adds an extra layer or objectivity to quantification.
In addition to that, on 9th of October 2019 OECD released the Unified Approach. The proposed Unified Approach under Pillar One, which is an important step forward towards an agreement among the member countries of the OECD in reaching a consensus solution for reforming the international tax framework. The determination of how the amount is allocated is still vague and unclear (formulaic approach) but it seems

With this objective in mind, we invite you to an informative webinar where we will discuss the following:

• Presentation of TPA Global’s holistic quantitative VCA analysis
• Explanation with examples of the Industry-wide quantitative VCA
• Explanation of the “Unified Approach”
• Where does the “Unified Approach” lead to?

Tax authorities are increasingly relying on technology for data gathering, exchange of information and analytics. Current digital systems can even provide real-time tax collections, re-conciliations and assessments. This means the pull factor to digitalize as an MNE gets stronger by the day.

One of the benefits of automation is that it helps to avoid mistakes in calculations and other repetitive tasks. In order for companies to stay relevant, they need to integrate / adjust those new technologies in their business model. Along with the implementation of the digitalization wave it is highly important that a company try to move from ‘Staying out of trouble’ to being ‘Fully in control’. In order to do that, a thorough insight or the company’s roadmap is needed.

Key Highlights

The webinar will consider the following:

• How to effectively adopt and enable tax technology initiatives;
• The technologies which can positively impact tax functions; and
• Insight to Tax technology strategy and roadmap.

How to deal with Customs compliance in a dedicated control frame; the use of smart data analytics and supply chain solutions to be ready for a severe and more punitive regulatory framework.

The international market and supply chain is changing its dynamics every day. This includes the future direction and growth path of E-commerce. Tariffs and VAT are thriving parameters used to shape the global relationships between trade partners / blocks.

At best, customs and tax authorities are trying to simplify the control framework at their end, without sacrificing the thoroughness and completeness of their audits. Key in this development is the requirement for smart data analytics.

The requirement of key data becomes larger, more diverse and comes from more and more different sources and will in the nearby future increasingly required real time. Under the AEO requirement, auditors will also check whether you are in control or your data flows and how you are using data to stay in control.

The issue for the need for data from different sources is to bring this data in one single database and to use digitized match file coding to enrich current base files with data from other sources, digitize checks on filings before the current filing, speed up the creation or 100% correct filings and reduce the need for administrative resources to review and work filings in excel spreadsheets.

Smart data analytics is to use digitized in process audits and a sound data governance model to enable:

• compliant filing or VAT returns and Import / Export declarations;
• reduce capacity requirements for operational filings;
• concern the operational filings on exceptions and real issues;
• provides smart reporting to all levels that requires this, incl. CFO level;
• increases the “being in control” level from an AEO perspective.

Key Highlights

With this objective in mind, we invite you to an informative webinar where we will discuss the following.

• How an import / export related data can be checked using logistics data.
• Smart use of master files and dashboards for customs planning and internal audits.
• How to use smart coding to drive VAT filing preparations.

In a world that is moving at a fast pace in the light of the “disruptive” digitalization processes happening at the moment, it is essential for taxpayers to be aware of their rights and the balance of power existing between them and the tax authorities (” Bag “).

In this webinar we will discuss rulings from the Dutch Supreme Court where the taxpayer’s right to be informed was assessed in the context of a mathematical calculation software.

This case raises the question of discrepancy in the balance of power existing between the taxpayers and the TAs in respect of the latter’s access to information and analysis or such information. It also raises the question of the extent to which taxpayers are entitled to a right to be informed about the amount of tax they are bound to pay and the mechanisms behind the calculation of such amount by the TAs.

Key Highlights

With this objective in mind, we invite you to an informative webinar where we will discuss the following:

• A summary of the Dutch Supreme Court case;
• Discussion on what are the technological developments in the field of taxation; and
• Discussion on how should taxpayers prepare for this digitization process and how to safeguard their rights.

Without a doubt, the much-awaited judgments of the EU Court in Starbucks and Fiat have created an array of debates, from application of the concept of state aid to tax matters to redesign or transfer pricing concepts. Therefore, we bring three experts on the matter, Philip Baker, Hans van den Hurk and Steef Huibregtse, who will seek to answer some of these questions in a webinar and present their view on the judgment and what lies ahead for multinationals in Europe.

In this informative webinar, we will discuss the Market Economy Investor Principle approach tasks by the EU Commission in comparison with the Arm’s Length Principle and what are the legal and practical implications of this action along with providing details of the two judgments.

Key Highlights

With this objective in mind, this informative webinar will discuss the following:

• Key highlights of Starbucks and Fiat
• The background to the tax ruling decisions of the Commission
• What is the legal basis for member states to initiate these proceedings?
• Is there a “Commission ALP” and what are the implications for transfer pricing within Europe?
• What is the status and future of the ALP as we know it?

The BEPS Action Plans, in an attempt to tackle extreme cases of tax evasion, have inevitably blurred the line between strategic tax planning and fraudulent tax evasion for corporate taxpayers. This, coupled with latest publications of the OECD on ‘Fighting Tax Crime’ where taxpayers’ rights find a bleak mention as’ suspects rights’ has given force to many governments to enact a number of aggressive (and often, unjust) regulations.

This is obviously setting the scene for increasing tax controversy at a global level, and equally more so, for companies in the digital sector. Whether you are a company providing completely digitalized services or a traditional one just starting to implement digital interfaces or somewhere in the middle of the spectrum, you need a plan for risk management.

Key Highlights

With this objective in mind, we invite you to an informative webinar where we will discuss the following:

• How to conduct a value chain analysis?
• How to ensure consistency between your global filings?
• How to identify which regulations impact your current or upcoming business model and how?
• What types of dispute avoidance and management instruments are available?
• How should you select a controversial management tool most suited to your needs?

Due to a fast-changing tax landscape and increasing potential for tax authorities in the post BEPS world, it has become extremely important for taxpayers to be vigilant. Due to the increasing demands for transparency in this new world, taxpayers need to be pro-active and fully prepared with the appropriate know-how and tools to help them take a stance against the tax authorities. In this regard, TPA Global has identified ‘ qualitative and quantitative value chain analysis’ as one of the tools that will effectively equip the taxpayers better by giving them control over the MNE’s risk mitigation strategy.

In this regard, ‘qualitative and quantitative value chain analysis’  will prove to be a requisite tool as it is able to swiftly identify and resolve any mismatches between holistically applied value chain analysis and the transactional transfer pricing model or an MNE. Conducting a qualitative and quantitative value chain analysis helps taxpayers to have certainty in respect of profits allocated to different value drivers across business segments, jurisdictions, and legal entities etc., and will provide insight into whether their current transactional transfer pricing model functions appropriately. This will enable the taxpayer to have defense arguments being readily available at the time of audit if the allocation of profits is questioned.

Key Highlights

With this objective in mind, we invite you to an informative webinar where we will discuss the following:

• Benefits of conducting a qualitative and quantitative value chain analysis
• Presentation of qualitative value chain analysis techniques
• How to conduct a quantitative value chain analysis?

Countries have become increasingly aggressive in their aim to combat corporate tax avoidance. Global compliance has become more strict and complex due to new documentation requirements. The management boards have become highly concerned with reputational risks related to tax. Facing this ‘perfect tax storm’, multinational enterprises have to manage compliance costs, sensitive data disclosure and BEPS-related issues.

With so much external and internal pressure, tax and TP teams are wondering: ” what can be done to control and avoid significant risks?”

In this webinar, we will share practical insights with you on how to use value chain analysis for risk identification and prevention. We will also explain how to link your value chain components to controversy instruments. Further, we will address how tax technology helps to manage risks more efficiently.

Key Highlights

This webinar is an excellent opportunity for CFOs, Heads of Tax and Transfer Pricing:

• To learn how to apply value chain analysis for risk monitoring and reporting
• To understand tax controversy decision-making
• To acquire a knowledge on use of tax technology for full risk control