Transfer Pricing: Rules and Practice in Selected Countries (A-B) (Portfolio 6940)
At a glance
CHAPTER 10: AUSTRALIA
Enacted Legislation
Tax Laws Amendment (Cross-Border Transfer Pricing) Bill (No. 1) 2012 Enacted
Content
Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 Enacted
Administrative Developments
ATO Releases International Dealings Schedule 2012
ATO Releases Reportable Tax Positions Schedule for 2011-12
Inspector General of Taxation Launches Review into ATO Handling of Transfer Pricing Matters
Board of Taxation To Study Adopting OECD Approach to Attributing Profits to Permanent Establishments
CHAPTER 20: BELGIUM
Enacted Legislation
Measure Imposing Withholding Tax on Certain Income Attributed to Non-Residents
Belgian Legislation Amends Thin Capitalization Rules
Litigation
Court Decision on a Company's Minimum Taxable Base
Administrative Developments
Belgium's Tax Administration Increases Transfer Pricing Audits
CHAPTER 25: BRAZIL
Enacted Legislation
Brazil Amends Transfer Pricing Rules For Intercompany Loans
Brazil Amends Transfer Pricing Rules For Financial Transactions
Administrative Developments
Brazil's Ministry of Finance Issues Interest Rate Spreads for Cross-Border Loans
Brazil Revenue Authority Issues Transfer Pricing Regulations
Brazil Revenue Authority Issues Transition Rules for Transfer Pricing Regulations
Brazil Revenue Authority Publishes Reporting Requirements
U.S.-Brazil TIEA In Force
Detailed Analysis
Abstract
Chapter 10, “Transfer Pricing Rules and Practice in Australia,” describes the transfer pricing rules in Australia and discusses the way in which those rules are applied by the Australian tax authorities. The chapter addresses the expectations of taxpayers with respect to the documentation of transfer pricing arrangements, the manner in which taxpayers are selected for examination, the penalty regime, and defenses against transfer pricing adjustments. The treatment of tax losses, reliance on experts, Competent Authority processes, the relationship between transfer pricing and customs issues, and the limited case history in Australia are also discussed.
Chapter 20, “Transfer Pricing Rules and Practice in Belgium,” analyzes the main Belgian provision for transfer pricing adjustments (Article 26 of the Belgian Income Tax Code, dealing with the so-called abnormal or benevolent advantages) as well as the provisions to challenge tax avoidance through “tax havens” (Articles 54 and 344 paragraph 2 ITC). The chapter also discusses in detail the guidance provided by the Belgian tax authorities and summarizes the ruling practices and ruling procedure. The first part includes the application of the different transfer pricing provisions to specific intragroup transactions, such as the transfer of (in)tangible assets, waiver of a debt claim, financing agreements, and intragroup services. The second and third parts describe the audit practice from a transfer pricing perspective and give a brief overview of the compatibility of the Belgian domestic transfer pricing provisions with double tax treaties. The final part discusses procedures for preventing the double taxation that can result from transfer pricing adjustments, with special attention to the EU Arbitration Convention as well as to the relevant Belgian materials.
Chapter 25, “Transfer Pricing Rules and Practice in Brazil,” describes the transfer pricing rules in Brazil, their practical application to Brazilian taxpayers, and the effect of those rules in competent authority proceedings. The chapter places particular emphasis on a comparison of those rules with the OECD transfer pricing guidelines and discusses in some detail the likely legality of the rules as currently written under the Brazilian Federal Constitution.