OECD updates transfer pricing guidance.The Organization for Economic Cooperation and Development Organization for Economic Cooperation and Development (OECD), international organization that came into being in 1961. It superseded the Organization for European Economic Cooperation, which had been founded in 1948 to coordinate the Marshall Plan for European released two updates to its 1995 transfer pricing Transfer pricing refers to the pricing of goods and services within a multi-divisional organization, particularly in regard to cross-border transactions. For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be guidance, Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. The two chapters cover special considerations for transfer pricing in transactions involving intangible property intangible property n. items such as stock in a company which represent value but are not actual, tangible objects. and related-party services. The new guidance explains how a company should determine transfer pricing when the value of intangible property is uncertain at the tn:he of a transaction. The OECD OECD: see Organization for Economic Cooperation and Development. endorses strict application of the arm's-length principle under these circumstances, and it recommends the valuation should be treated similarly to the way independent companies commonly value intangibles under similar conditions. The update also discusses how a company that does not own a product's trademark or trade name can determine the compensation for marketing that product. The guidance also standardizes how to determine when intragroup services have been rendered. Companies must evaluate whether an independent company in comparable circumstances would have paid for intragroup services or whether it would have performed the services itself. The OECD also says a company must take into account the circumstances of both the service provider and the service recipient when determining an arm's-length charge for intragroup services. Copies of the updated guidance are available for $63 by calling the OECD publications and information center in Washington, D.C., at (202) 785-6323. OECD on the World Wide Web More information on OECD publications, guidance and news is available on the OECD web site: http://www.oecd.org/news_and_events CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment DIRECT: Major Benefits for Journal Readers Now there's another good reason for keeping up with the Journal. American Institute of CPAs members can earn up to 24 continuing education continuing education: see adult education. continuing education or adult education Any form of learning provided for adults. In the U.S. the University of Wisconsin was the first academic institution to offer such programs (1904). credits per year by reading selected Journal articles, completing four quarterly study guides and passing four quarterly examinations. An annual subscription costs $129. For information, call 1-800-862-4272 and select submenu An additional list of options within a single menu selection. There can be many levels of submenus. A submenu can have a submenu, which can have its submenu and so on. However, there is a practical limit as the more levels that have to be reached, the more confusing the interface. #3, option #1. To order, call 1-800-862-4272 and select submenu #1, option #3. An order form for the program appears on page 57. |
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