Canada: CRA publishes “PTM-05R” on requests for contemporaneous documentation
The Canada Revenue Agency (CRA) has issued a memo on transfer pricing on applications for contemporaneous documentation of the auditor entitled “PTM-05R” on March 28, 2014 and it replaces preceding PTM on the same subject dated 13 October 2004.
See MoreCanada: Decision in Marzen Aluminum transfer pricing case has released
The Tax Court of Canada has published its judgment in Marzen Artistic Aluminum Ltd. v The Queen (2014 TCC 194) on 10 June 2014 regarding a case of transfer pricing adjustment made by the Canada Revenue Agency (CRA) in respect of fees paid by
See MoreAngola introduced transfer pricing rules
Angola introduced a transfer pricing rule with a Presidential Decree n. 14713 on June 2014. According to the decree, the taxpayers require to submit transfer pricing documentation by the end of June 2014 to the tax management for the 2013 tax year.
See MoreGreece: Guidance for transfer pricing documentation requirements
On 9 April 2014, the Minister of Finance of Greece issued a ministerial decision that provides guidance regarding the following transfer pricing documentation requirements: The ministerial decision set out the detailed requirements in respect of the
See MoreIndia: Mumbai Tribunal settles charge of penalty in case of a transfer pricing adjustment
Recently in the case of Deloitte Consulting India Pvt Ltd (Taxpayer) regarding levy of penalty in the case of a transfer pricing (TP) adjustment. Here is the summary of the case and decision: The Taxpayer, an Indian company, had entered into a
See MoreTransfer Pricing Brief: May 2014
Australia Corporate Income Tax rate 30% for periods to 2013/14.Capital Gain Tax rate-Taxed at the same rate as business income. China Main Corporate Income tax- A lower 15% incentive corporation tax rate applies to specified industries in
See MoreCanada: New guidance regarding contemporaneous documentation
The CRA’s updated Transfer Pricing Memorandum (TPM-05R) clarifies the CRA’s process for requesting contemporaneous documentation and includes specifically four new sections, such as method of delivery, three-month delivery, documents provided to
See MorePhilippines- to issue Advance Pricing Agreement (“APA”) procedures
First APA procedures to be released by the Bureau of Internal Revenue (“BIR”) in the Philippines. In order to meet the criteria for tax collection targets, the BIR is making considerable resources available in order to develop transfer pricing
See MoreIndia: Income-tax Appellate Tribunal found that no adjustment given taxpayer’s minimal risks, limited functions
Recently, in the case of Marubeni Corp., Japan (ITA No: 5397/Del/2012) The Delhi Bench of the Income-tax Appellate Tribunal held that, a transfer pricing adjustment with respect to a taxpayer performing what were found to be low-end mediation
See MoreCanada follows suit with US and excludes references to OECD in TP request
Canada has adopted similar position to the US and has excluded references to the OECD’s three-tier documentation in favour of its own country specific transfer pricing (TP) documentation. The Canada Revenue Agency (CRA) has reviewed its TP
See MoreUS: IRS Releases Transfer Pricing Audit Roadmap
On 14 February 2014 a Transfer Pricing Audit Roadmap was issued by the Large Business and International (LB&I) division of the IRS. This sets out the procedures in relation to the conduct of a transfer pricing audit and the timeline to follow.
See MoreMalaysia – Transfer pricing documentation required for 2014 tax return
The Malaysian transfer pricing rules imposing the arm’s length principle are contained in section 140A of the Income Tax Act. The Inland Revenue Board has been increasing its scrutiny of the transfer pricing issues of large taxpayers and is
See MoreCanada – Foreign affiliate anti-avoidance rule and tax efficient financing
The Federal Court of Appeal has upheld the verdict of a lower Court that the foreign affiliate anti-avoidance rule does not lead to the loss of the tax deduction in respect of exempt surplus dividends received from a US affiliate using a tax
See MoreTransfer Pricing Brief: April 2014
Australia Tax assessment-The taxpayer should have a "reasonably argued position" on all transfer pricing issues to support the self-assessment return.Transfer pricing rule-TR 2014/D3 gives guidance on factors relevant for identifying the
See MoreMexico: Appeal procedures for certain challenges to tax reform
Mexico’s Supreme Court of Justice (Suprema Corte de Justicia de la Nación) has postponed the hearing of appeals in amparo actions, these being legal actions that challenge the constitutionality of some measures included in the 2014 tax reform.
See MoreUS: GAO Reports that Large Partnerships are Avoiding the IRS Net
In a preliminary report from the United States Government Accountability Office (GAO) it is shown that the IRS is currently conducting a tax audit in respect of only around one percent of the largest partnerships in the US. The GAO report suggests
See MoreAustralia: Guidance TR 2014/D4 clarifies the requirements of transfer pricing documentation
The transfer pricing rules require documentation to be prepared by the time of lodging the relevant tax return. Guidance in TR 2014/D4 clarifies that documentation must be brought into existence by the date of the tax return. Documentation prepared
See MoreUK – Tougher Penalties for Offshore Evaders
Offshore tax evaders are likely to face stiffer penalties under measures recently announced in the 2014 UK Budget. The UK government has said that stricter penalties would apply to individuals who hold money in hidden bank accounts in countries that
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