Introduction There is no divine truth about what the Arm’s Length Standard (ALS) actually means. Its content can only be determined by a decision, which can be reached by a court or by means of political consensus. There is no international tax court with jurisdiction to promote harmonization among countries on the content of the…
Since the news of the Brazilian request to accede to the OECD broke out, much has been speculated about the future of the Brazilian TP approach. Brazil is historically one of the major economies to deviate from the OECD Guidelines – and its approach has been severely criticized for that. Thus, it is no surprise…
It is common to face resistance in MAP application, which is essentially based on misconception of Double Taxation Conventions (DTCs). As Article 9(1) establishes the arm’s length standard, which presents a range of possible prices, that misunderstanding may imply more economic double taxation. Given the Brazilian position on recent transfer pricing changes, these problems become…
Brazil is known for its unique transfer pricing legislation. While in most countries the use of comparables is central for the application of the transfer pricing methods, the Brazilian system has conceived the “fixed margins”, as means of ensuring practicability[1]. The Brazilian legislation adopts the predetermined profit margins under the equivalents of the resale and…
Introduction While tax legislation is subject to continuous changes, tax treaties are an interesting tool whereby Contracting States offer investors some degree of legal certainty, especially where there is a recognition that internal law should not override tax treaties’ provisions. Article 2(4) of OECD-MA can be seen as a provision intended to assure the continuity…
As from the first BEPS proposals with respect to intangibles, it has been considered that the Arm’s Length Standard (“ALS”) is “slowly but surely being relegated to the back seat” of the OECD Guidelines.[1. R. Robillard, BEPS: Is the OECD Now at the Gates of Global Formulary Apportionment?, 43 Intertax 447, at 447.] Indeed, some…
In the last few months I have been deeply committed with the Klaus Vogel Lecture, which will be held in September 25, 2015, in the Vienna University of Economics and Business (see invitation here). I have chosen the theme “Arm’s Length beyond the Guidelines of the OECD”. My research has led to the writing of…
Co-authored by Luís Eduardo Schoueri and Mateus Calicchio Barbosa Spotlight was shed on transparency by the OECD’s BEPS Plan, where a set of Actions was put forward under the flag of “ensuring transparency while promoting increased certainty and predictability”. The document suggests a “more holistic approach” to the matter, and states that the obtaining of…
The claim for the so-called “single taxation principle”, in spite of its doubtful general acceptance, seems to have been acknowledged by the OECD, which has moved from a position whereby countries should explicitly state the limits of the application of tax treaties in case of abuse, to an opposite view ascertaining that tax treaty protection…
An issue of topical interest for tax administrations in the heat of the BEPS Plan, examining the existence of a PE does not seem to be on the agenda of Brazilian authorities. In a ruling from June, 2014, the Revenue Service confirmed the long-standing Brazilian treaty practice of taxing income from services at source irrespective…
