Benchmarking Marketing Intangibles: Need for Coordinated Transfer Pricing Regimes
VISION: Journal of Indian Taxation
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Title |
Benchmarking Marketing Intangibles: Need for Coordinated Transfer Pricing Regimes
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Creator |
Radhakrishnan, Lakshana
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Subject |
Transfer pricing; Market intangibles; Base erosion and profit shifting (BEPS); Arms length price; AMP costs.
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Description |
Tax competitive policies can be effective in cases of a collaborated cross-border effort with international consensus on minimum thresholds and mechanisms for cross-country cooperation. However, aggressive uncoordinated tax competitiveness destroys value and shrinks the growth and prosperity of the industry. Hence, there is a need for tax certainty and common standards in international transfer pricing. The OECD has provided a framework for countries to move towards universal tax regimes that have common tax policies and coordinated implementation systems. This paper highlights the issue of AMP (advertising, marketing and promotion) costs in transfer pricing and seeks to establish the need for coordination among national tax systems. Ensuring consistency among the tax policies of the worlds nations is important for preventing instances of BEPS (base erosion and profit shifting) that are the products of the gaps between elaborately drafted and extremely complicated tax legislations. Creation of universal tax principles and their effective implementation is the only solution to this problem.
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Publisher |
Journal Press India
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Date |
2017-06-06
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://www.myresearchjournals.com/index.php/VISION/article/view/7900
10.17492/vision.v3i2.7900 |
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Source |
VISION : Journal of Indian Taxation; Vol 3, No 2 (2017)
2347-4475 |
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Language |
eng
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Relation |
http://www.myresearchjournals.com/index.php/VISION/article/view/7900/7232
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