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Table of Contents
Cover
Title
Copyright
Table of Contents
Preface
Acknowledgements
Abbreviations
Chapter 1: Introduction
1.1. Background
1.1.1. From where it started: A query of emerging countries
1.1.2. Developing countries are a rising force in the global economy and in the international tax community
1.1.3. Global businesses embrace a knowledge-based economy
1.1.4. Modern business models erode physical presence in host countries
1.1.5. Arm's length principle falls short and requires further modification post-BEPS
1.2. Research questions
1.3. Novelty of the research
1.4. Scope and assumptions
1.5. Methodologies
1.6. Structure
Chapter 2: Conceptual Debate of Location-Specific Advantages
2.1. Introduction to LSAs
2.2. LSAs as an economic concept
2.3. LSAs as a tax law and transfer pricing concept
2.3.1. LSAs justify the taxing right of host countries in international taxation
2.3.2. LSAs present a pricing problem in transfer pricing
2.3.3. LSAs present insufficiently identifiable value under the current guidance and practice of transfer pricing
2.3.4. LSAs present as an inherent deficiency in allocating global taxing rights
2.4. Concluding remarks
Chapter 3: Transfer Pricing Debate in International and National Domains
3.1. Insights from the international organizations
3.1.1. The OECD TP Guidelines
3.1.2. The UN TP Manual
3.2. Insights from selected countries
3.2.1. US tax law
3.2.2. German tax law
3.2.3. Chinese tax law
3.2.3.1. "China Country Practice" in the 2017 UN TP Manual
3.2.3.2. Domestic transfer pricing rules in China
3.2.4. Indian tax law
3.2.4.1. Location savings and other LSAs
3.2.4.2. Marketing intangibles
3.3. Concluding remarks
Chapter 4: Economic Views of Multinational Enterprises
4.1. MNEs and the global economy.
4.2. Economic theories of firms and MNEs
4.2.1. Overview of the theories
4.2.2. An integration of firm theories
4.2.2.1. Ownership advantages and KBC
4.2.2.2. Locational advantages
4.2.2.3. Internalization advantages
4.2.3. Interactions of OLI advantages with contemporary considerations
4.3. Concluding remarks
Chapter 5: Theories of Taxing MNEs
5.1. Separate entity theory
5.1.1. What it is
5.1.2. Merits and demerits
5.1.3. Appraisals
5.2. Unitary entity theory
5.2.1. What it is
5.2.1.1. Tax unit: The unitary business
5.2.1.2. Tax base: Consolidated income of the unitary business
5.2.1.3. Formulary apportionment: Factors and weights
5.2.2. Merits and demerits
5.2.3. Appraisals
5.3. Concluding remarks
Chapter 6: The Arm's Length Principle
6.1. Pre-BEPS developments since the 1930s
6.1.1. 1930s-1960s: The emergence of the arm's length principle
6.1.2. 1960s-1995: International acceptance of the arm's length principle
6.1.3. 1995-2015: Diverging national practice in respect of the arm's length principle
6.2. The BEPS Project as an overhaul of the arm's length principle
6.2.1. The BEPS initiatives and outcomes
6.2.2. The post-BEPS arm's length principle
6.2.2.1. Value creation is the new requirement
6.2.2.2. Addressing the separation of risks from functions
6.2.2.3. Addressing the separation of intangible-related income from functions
6.2.2.4. Revised guidance on the transactional profit split method
6.2.2.5. Simplified approach to low value-adding services
6.2.3. Interpretative value of the post-BEPS arm's length principle in tax treaties
6.3. The post-BEPS arm's length principle requires further modification
6.3.1. The arm's length principle per se is not a principle.
6.3.2. Global formulary apportionment is not ready to replace the arm's length standard as the international solution
6.3.3. The arm's length principle presents fundamental limits in guidance and practice
6.3.3.1. Transactional significance
6.3.3.2. Functional analysis at entity level
6.3.3.3. The post-BEPS arm's length principle still excessively underlines functional significance
6.4. Concluding remarks
Chapter 7: A New Framework for the Guidance and Practice of the Arm's Length Principle
7.1. Background
7.1.1. The profit allocation problem caused by insufficient inclusion of LSAs
7.1.2. Alternative international proposals
7.2. The proposal
7.2.1. Overview
7.2.2. The revised transfer pricing analysis
7.2.3. The revised transfer pricing methods
7.2.3.1. The one-sided methods with adjustment applicable in Scenario 1
7.2.3.2. The revised residual profit split method applicable in Scenario 2
7.3. Appraisal
Chapter 8: Conclusions
8.1. What are LSAs?
8.2. What is the transfer pricing problem caused by LSAs?
8.3. What is the rationale for resolving the problem identified?
8.4. What is the proposal?
Bibliography
Other Titles in the WU Institute for Austrian and International Tax Law - Tax Law and Policy Series.
Title
Copyright
Table of Contents
Preface
Acknowledgements
Abbreviations
Chapter 1: Introduction
1.1. Background
1.1.1. From where it started: A query of emerging countries
1.1.2. Developing countries are a rising force in the global economy and in the international tax community
1.1.3. Global businesses embrace a knowledge-based economy
1.1.4. Modern business models erode physical presence in host countries
1.1.5. Arm's length principle falls short and requires further modification post-BEPS
1.2. Research questions
1.3. Novelty of the research
1.4. Scope and assumptions
1.5. Methodologies
1.6. Structure
Chapter 2: Conceptual Debate of Location-Specific Advantages
2.1. Introduction to LSAs
2.2. LSAs as an economic concept
2.3. LSAs as a tax law and transfer pricing concept
2.3.1. LSAs justify the taxing right of host countries in international taxation
2.3.2. LSAs present a pricing problem in transfer pricing
2.3.3. LSAs present insufficiently identifiable value under the current guidance and practice of transfer pricing
2.3.4. LSAs present as an inherent deficiency in allocating global taxing rights
2.4. Concluding remarks
Chapter 3: Transfer Pricing Debate in International and National Domains
3.1. Insights from the international organizations
3.1.1. The OECD TP Guidelines
3.1.2. The UN TP Manual
3.2. Insights from selected countries
3.2.1. US tax law
3.2.2. German tax law
3.2.3. Chinese tax law
3.2.3.1. "China Country Practice" in the 2017 UN TP Manual
3.2.3.2. Domestic transfer pricing rules in China
3.2.4. Indian tax law
3.2.4.1. Location savings and other LSAs
3.2.4.2. Marketing intangibles
3.3. Concluding remarks
Chapter 4: Economic Views of Multinational Enterprises
4.1. MNEs and the global economy.
4.2. Economic theories of firms and MNEs
4.2.1. Overview of the theories
4.2.2. An integration of firm theories
4.2.2.1. Ownership advantages and KBC
4.2.2.2. Locational advantages
4.2.2.3. Internalization advantages
4.2.3. Interactions of OLI advantages with contemporary considerations
4.3. Concluding remarks
Chapter 5: Theories of Taxing MNEs
5.1. Separate entity theory
5.1.1. What it is
5.1.2. Merits and demerits
5.1.3. Appraisals
5.2. Unitary entity theory
5.2.1. What it is
5.2.1.1. Tax unit: The unitary business
5.2.1.2. Tax base: Consolidated income of the unitary business
5.2.1.3. Formulary apportionment: Factors and weights
5.2.2. Merits and demerits
5.2.3. Appraisals
5.3. Concluding remarks
Chapter 6: The Arm's Length Principle
6.1. Pre-BEPS developments since the 1930s
6.1.1. 1930s-1960s: The emergence of the arm's length principle
6.1.2. 1960s-1995: International acceptance of the arm's length principle
6.1.3. 1995-2015: Diverging national practice in respect of the arm's length principle
6.2. The BEPS Project as an overhaul of the arm's length principle
6.2.1. The BEPS initiatives and outcomes
6.2.2. The post-BEPS arm's length principle
6.2.2.1. Value creation is the new requirement
6.2.2.2. Addressing the separation of risks from functions
6.2.2.3. Addressing the separation of intangible-related income from functions
6.2.2.4. Revised guidance on the transactional profit split method
6.2.2.5. Simplified approach to low value-adding services
6.2.3. Interpretative value of the post-BEPS arm's length principle in tax treaties
6.3. The post-BEPS arm's length principle requires further modification
6.3.1. The arm's length principle per se is not a principle.
6.3.2. Global formulary apportionment is not ready to replace the arm's length standard as the international solution
6.3.3. The arm's length principle presents fundamental limits in guidance and practice
6.3.3.1. Transactional significance
6.3.3.2. Functional analysis at entity level
6.3.3.3. The post-BEPS arm's length principle still excessively underlines functional significance
6.4. Concluding remarks
Chapter 7: A New Framework for the Guidance and Practice of the Arm's Length Principle
7.1. Background
7.1.1. The profit allocation problem caused by insufficient inclusion of LSAs
7.1.2. Alternative international proposals
7.2. The proposal
7.2.1. Overview
7.2.2. The revised transfer pricing analysis
7.2.3. The revised transfer pricing methods
7.2.3.1. The one-sided methods with adjustment applicable in Scenario 1
7.2.3.2. The revised residual profit split method applicable in Scenario 2
7.3. Appraisal
Chapter 8: Conclusions
8.1. What are LSAs?
8.2. What is the transfer pricing problem caused by LSAs?
8.3. What is the rationale for resolving the problem identified?
8.4. What is the proposal?
Bibliography
Other Titles in the WU Institute for Austrian and International Tax Law - Tax Law and Policy Series.