As business operations in emerging markets increase, more countries are implementing and developing advance pricing agreement (APA) regimes. China, India and Turkey represent three different approaches but indicate that APAs are an increasingly popular option for taxpayers in certain situations.
An Indian Special Bench ruling has emphasised the importance of functional comparability in transfer pricing (TP) reports and concluded that high margin comparables cannot be excluded.
The Danish National Tax Board recently issued a ruling which changed a limited partnership to the status of permanent establishment (PE), suggesting a move towards broader categorisation of what constitutes a PE.
Turkey recently implemented European Court of Human Rights (ECHR) law in a transfer pricing case, signalling a pioneering move towards developments in taxpayers’ rights.
French taxpayers must pay any additional tax assessed by the authorities in advance of a mutual agreement procedure, according to the country’s 2014 Finance Act (No 2013-1278).
