Transfer Pricing
Western Regional Chapter of International Fiscal Association –Indian Branch Transfer Pricing Problems, Strategies and Documentation
Recent International Case Law on Transfer Pricing by Nishith Desai
The Taj Mahal Hotel, Mumbai January 21st & 22nd 2002
Nishith Desai Associates
2
TRANSFER PRICING
Content
I. II. Introduction History
III. Select International cases US Cases 1. 2. 3. Compaq Computer Corporation V. Commissioner DHL Corporation and Subsidiaries V. Commissioner Texaco Inc. and Subsidiaries V. Commissioner of Internal Revenue 4. Exxon Corporation and Affiliated Companies, et al V. Commissioner 5. Central De Gas Chihuahua, S.A. V. Commissioner of Internal Revenue 6. Sunstrand Corporation and Subsidiaries V. Commissioner of Internal Revenue 7. E. I. Dupont De Nemours and Company V. the United States
Australian case 1. San Remo Macaroni Co Pty Ltd V. CMR of Taxation
UK cases 1. 2. Rochester (UK) Limited and another V. Pickin Glaxo Group Ltd and Others V. Inland Revenue Commissioners
Canadian case 1. IV. Smithkline Beecham Animal Health Inc.
Book Closure
Nishith Desai Associates
3
SELECT CASES ON TRANSFER PRICING -by Nishith Desai*
timulated by the technological advancements, trade has not remained restricted to geographical limitations. It has enhanced its scope to encompass the resources from around the world, giving rise to various issues from commercial, business and tax perspective. These trade transactions have predictably caused and continue to cause large amounts of transfer of tangibles and intangibles, all across the globe. Following this, it became essential for governments all over the world to bring under their tax net, the transactions resulting from the transfer of such resources. Thus, restricted regional economies have been transformed to global economies and now are fast moving to the ‘One World – One Economy’ concept. Consequentially, transfer pricing, resulting from these numerous
Recent International Case Law on Transfer Pricing by Nishith Desai
The Taj Mahal Hotel, Mumbai January 21st & 22nd 2002
Nishith Desai Associates
2
TRANSFER PRICING
Content
I. II. Introduction History
III. Select International cases US Cases 1. 2. 3. Compaq Computer Corporation V. Commissioner DHL Corporation and Subsidiaries V. Commissioner Texaco Inc. and Subsidiaries V. Commissioner of Internal Revenue 4. Exxon Corporation and Affiliated Companies, et al V. Commissioner 5. Central De Gas Chihuahua, S.A. V. Commissioner of Internal Revenue 6. Sunstrand Corporation and Subsidiaries V. Commissioner of Internal Revenue 7. E. I. Dupont De Nemours and Company V. the United States
Australian case 1. San Remo Macaroni Co Pty Ltd V. CMR of Taxation
UK cases 1. 2. Rochester (UK) Limited and another V. Pickin Glaxo Group Ltd and Others V. Inland Revenue Commissioners
Canadian case 1. IV. Smithkline Beecham Animal Health Inc.
Book Closure
Nishith Desai Associates
3
SELECT CASES ON TRANSFER PRICING -by Nishith Desai*
timulated by the technological advancements, trade has not remained restricted to geographical limitations. It has enhanced its scope to encompass the resources from around the world, giving rise to various issues from commercial, business and tax perspective. These trade transactions have predictably caused and continue to cause large amounts of transfer of tangibles and intangibles, all across the globe. Following this, it became essential for governments all over the world to bring under their tax net, the transactions resulting from the transfer of such resources. Thus, restricted regional economies have been transformed to global economies and now are fast moving to the ‘One World – One Economy’ concept. Consequentially, transfer pricing, resulting from these numerous