Industry representatives are concerned about the continued viability of the arm’s-length principle in light of the OECD’s paper on risk and re-characterisation, released as part of the base erosion and profit shifting (BEPS) project.
The Public Accounts Committee (PAC) met last month to ask HM Revenue & Customs (HMRC) about its efforts to curb tax avoidance, including how HMRC has developed its transfer pricing approach to counteract tax arrangements such as those by Google, Amazon and Starbucks.
Taxpayers and their advisers want the Indian government to clarify a number of issues including indirect share transfers in their 2015 budget on February 28.
Businesses have made their feelings clear about the OECD’s work on preventing treaty abuse, which is a sub-section of the organisation’s work on base erosion and profit shifting (BEPS).