Transfer Pricing Times: OECD Releases Discussion Draft On Hard-To-Value Intangibles

In this edition: the OECD releases discussion draft on hard-to-value intangibles, Australia issues risk framework for evaluating intercompany loans, recent transfer pricing developments in India, Italy and China revise national regulations to more closely align with the OECD guidelines and related BEPS recommendations, and U.S. tax reform topics.

OECD Releases Discussion Draft on Hard-to-Value Intangibles

On May 23, 2017, the OECD released a public discussion draft addressing certain aspects of transfer pricing for hard-to-value intangibles ("HTVIs").

When taxpayers employ transfer pricing methodologies for intangibles that are informed by expectations, tax administrations necessarily have an interest in ensuring that the projections that are used fully reflect all relevant information available to the taxpayer (and to ensure that taxpayers haven't misstated expectations to gain tax advantage). The HTVI provisions provided as part of the final BEPS report for