Coffey Report To Kick-Start Transfer Pricing Modernisation In Ireland

The Irish Minister for Finance published a report entitled 'Review of Ireland's Corporation Tax Code' (the "Report") on 12 September 2017.  The Report was compiled by an independent expert, Mr Seamus Coffey, who was appointed in October 2016 to review Ireland's corporation tax code.  The Report makes a number of recommendations to modernise Ireland's domestic transfer pricing rules (the "TP Rules").

Existing Transfer Pricing Framework

Transfer pricing was introduced into the Irish tax code in 2010.  The key features of the TP Rules are as follows:

• The TP Rules apply to trading transactions only (ie, they do not currently apply to passive or capital transactions);
• The TP Rules determine arm's-length pricing based on the 2010 OECD transfer pricing guidelines;