3. Addressing Challenging Transfer Pricing Items which Arose from BEPS - Enrique Rayon
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Value Chain Analysis<br />
• The arm’s length principle and value creation, not formulary apportionment<br />
• Value Creation ≠ Value Chain Analysis<br />
• Selected countries require a value chain analysis is to be included in transfer<br />
pricing documentation, e.g., CN, NL, etc.<br />
• How and where is value created in the company?<br />
• VCA ≈ Art+Science<br />
• Delineate the intercompany transaction<br />
• Functional analysis (functions, risks, assets)<br />
• Economic Value of functions/risks/assets, again, not a formulary profit allocation<br />
<strong>Transfer</strong> <strong>Pricing</strong> | 2017
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