”Will pillar one be the solution?”

”Will pillar one be the solution?”

Prof. Dr Hans van den Hurk

 In this article, the author will discuss some elements from the new chapter X of the OECD Transfer Pricing Guide­lines for Multinational Enterprises and Tax Administra­tions (OECD Guidelines)1 and some related provisions from chapter I2 to which chapter X refers in relation to the EU Arbitration Directive and the Dutch implementation act Wet Fiscale Arbitrage (Tax Arbitration Act, WFA). The purpose of this article is to test a number of ambiguities in the application of chapter X against the EU Arbitra­tion Directive,3 which was created to effectively eliminate double taxation in the event of disputes.

Chapter X of the OECD Guidelines is intended to clarify how various financial transactions could and should be assessed in light of BEPS developments. Naturally, this article explicitly discusses the intra-group loan. In addi­tion, more specific subjects such as cash pools and insur­ance captives are also considered. The intention is not to exhaustively discuss all the topics from chapter X.4

SOURCE: International TransferPricing Journal January/February 2022: IBDF