(December 19, 2014) 

On December 19, 2014 the OECD released an other Discussion Draft with respect to the BEPS Action Plan for public consultation. The Discussion Draft regards Actions 8, 9, 10 (“Assure that transfer pricing outcomes are in line with value creation”) of the Action Plan on Base Erosion and Profit Shifting. Action 8 – Intangibles; Action 9 – Risks and capital and Action 10 – Other high-risk transactions.

This Discussion Draft is titled: “Public Discussion Draft – BEPS ACTIONS 8, 9, 10: DISCUSSION DRAFT ON REVISIONS TO CHAPTER I OF THE TRANSFER PRICING GUIDELINES (INCLUDING RISK, RECHARACTERISATION, AND SPECIAL MEASURES”.

The discussion draft is divided into two parts. Part I contains a proposed revision to Section D of Chapter I of the Transfer Pricing Guidelines, and comments are invited on the revisions. The proposals emphasise the importance of accurately delineating the actual transactions, and include guidance on the relevance and allocation of risk, determining the economically relevant characteristics of the controlled transaction, and on recharacterisation or non-recognition of transactions.

Part II of sets out options for some special measures, as envisaged in the BEPS Action Plan with regard to intangible assets, risk and over-capitalisation. A series of questions relating to all the options has been set out, and responses to these questions will be taken into account when considering the appropriateness and design of each option.

The OECD invites interested parties to submit written comments by February 6, 2015. Comments should be sent by e-mail in Word format and should be addressed to Andrew Hickman, Head of Transfer Pricing Unit, Centre for Tax Policy and Administration.

Furthermore the OECD informs the public that a public consultation meeting regarding the discussion draft will be held in Paris at the OECD Conference Centre on March 19-20, 2015.

Click here to be forwarded to the Discussion Draft as published on the website of the OECD, which will open in a new window.

For further information (e.g. the e-mail address where the comments should be sent) click here to be forwarded to the press release as issued by the OECD in this respect.

Interested in quickly finding more BEPS documents? Then check out our sub-section BEPS in the section OECD & Model Conventions.

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