The deadline has been extended for comments to be submitted on the draft toolkit issued by the Platform for Collaboration on Tax dealing with the ways developing countries can overcome the problem of a lack of comparable data for transfer pricing analyses. The draft toolkit was originally launched in January 2017 and the deadline for comments has now been extended to 7 April 2017.
The OECD, IMF, World Bank and UN announced the creation of a Platform for Collaboration on Tax on 19 April 2016. The Platform aims to intensify cooperation between these bodies and host regular consultations on the design and implementation of international tax standards. The Platform is also intended to strengthen capacity building support; develop joint guidance on tax; and facilitate information sharing on operational and knowledge activities.
The toolkit looks at the search process and examines measures to make the most of the existing data that rely less on publicly available comparable data. Possible approaches include safe harbors, benefit tests, profit splits and protective and the toolkit emphasizes that transfer pricing involves flexibility and judgment.