The OECD is considering revising the guidance in Chapter IV (administrative approaches) of the transfer pricing guidelines. A consultation has been held, for which the closing date for comments was 20 June 2018, and the comments from interested parties are to be made publicly available in due course.
The views of interested parties were invited on how the guidance in Chapter IV could be revised or expanded to take into account the latest developments relating to administrative procedures for minimising and helping to resolve transfer pricing disputes, thereby increasing tax certainty and preventing double taxation. The OECD is considering any additional aspects or mechanisms that could be included in the guidance so as to reduce the risk of transfer pricing disputes, including for example co-operative compliance or risk assessment tax examination practices. Another possibility being considered is to include additional guidance in relation to corresponding and/or secondary adjustments to minimise the risk of double taxation.
The OECD also invited comments on additional guidance in relation to advance pricing arrangements (APAs). The guidance on APAs was updated in 2017 based on the recommendations of the BEPS project and the OECD in its latest consultation document asked for comments on any features of APAs or specific initiatives related to APAs that could increase their capacity to prevent transfer pricing disputes.
