Developments in Transfer pricing and the impact of actions of OECD BEPS
2nd Symposium of CR for transfer pricing
The 2nd Symposium Transfer Pricing organized by EY Greece, exactly one year after the successful organization of the 1st Symposium was intended as the developments in transfer pricing in Greece and international tax developments, focusing on the recently finalized OECD Actions tackling Erosion of Tax Base and Profit Transfer (Actions BEPS).
“Given that our country has already incorporated in the tax law proposals in the Actions BEPS (such as rules on controlled foreign companies – CFC, the general anti-avoidance – GAAR, the rules of thin capitalization – thin cap, the Basic Folder Documentation intra-group transactions), I think that will be one of those countries will incorporate in its legislation, the remaining proposals of BEPS Actions “said Mr. Stefanos Mitsios, head of the tax department of EY Greece, opening the round of presentations.
Stephen Mitsios even stressed that “Changes in international tax landscape are cosmogony and indeed cosmogony that shortly expected to affect the tax affairs and Greek companies. What do we do about it? We must consider whether such changes require changes in the way we operate (changes that matter), and it is equally important to be able, even if they do not have to change anything in the way, to show that we operate lawfully (changes ie transparency of our transactions). ”
Mrs. Konstantina Galli, Senior Manager in the Tax department of EY Greece initially analyzed Action 6 on the fight against misuse of Double Tax Avoidance Agreements. In this context, it pointed out the need to review the operating model of each group, and if after the application of the new rules the group companies remain entitled to benefits from the application of the Conventions on the Avoidance of Double Taxation. Subsequently, Constantina Galli analyzed Action 7 regarding the combating of artificial avoiding the establishment of permanent establishment and noted that it should be examined whether the new data created conditions for acquiring a permanent establishment, for enterprises to prepare in time for the possible application of the proposed changes.
Mr. Christos Kourouniotis, Executive Director at the tax department of EY Greece, reported on BEPS actions directly related to the transfer pricing and the need to examine whether these changes affect the pricing of intra-group transactions and by extension their documentation. Further he emphasized that does not mean that these changes affect all companies, but certainly not less risky Ignoring before make sure that do not concern us.
At local level and especially in the Transfer Pricing must recognize said Christos Kourouniotis that both have improved the legal framework and other guidelines issued in 2015 by the management for its application, sample good administration. These instructions were provided recently (July 2015) were analyzed during a presentation at the Symposium and reference was made and the issues that remain to be clarified.
In turn, Mr. Christos Bourkoulas, Manager in the Tax department of EY Greece said that a sample of good administration is the process of pre-approval pricing methodology of intragroup transactions (APA), which in connection with the growing intensity of checks Transfer Pricing, It is a useful tool for obtaining legal certainty and to reduce compliance costs in the long run. The importance of pre-approval process has been emphasized as opposed to the experience of recent tax audits, transfer pricing and the usual friction points caused and the fact that the monitoring of intercompany transactions contained in the relevant targeting of inspections – receipts of the General Secretariat of Public Revenue and is an important indication that the transfer pricing is high on the agenda of fiscal supervision.
