The arm’s-length principle has been the cornerstone of the international tax system for about a century; that system is now in a state of flux and seems under threat. The OECD BEPS 2.0 project is seen by many as a potential paradigm shift that, in the medium term, will lead to the end of transfer pricing as we know it.
In a series of articles, Thomas Bettge, Jessie Coleman, Quyen Huynh, and Alistair Pepper take a step back and reassess the merits of the arm’s-length principle and the significant problems with global formulary apportionment—the perceived alternative. They also consider the impact that the BEPS 2.0 project and other OECD initiatives may have on the future of transfer pricing.
Collectively, the authors brings a wealth of tax policy insights, with experience at the OECD, the World Bank Group, and U.S. Treasury. For those that are interested in the future of transfer pricing, these articles provide real insights in where we’ve come from and where we might be going to.