Transfer Pricing Aspects in Business Restructurings

August 01, 2010
From a transfer pricing (TP) perspective, ‘’business restructuring‘’ refers to transnational transfer and/or reallocation of functions, assets (both tangible and intangible), and risks by MNEs between related entities operating in different jurisdictions. Business restructurings have been on the top of agenda of both national regulators and multilateral bodies. New legislation has been in place in Germany from January 1, 2008, and the OECD has recently published a discussion draft for public comment, after several rounds of discussions. It is now expected that such business restructuring operations will soon be framed within both an OECD set of principles and possibly domestic provisions especially applicable to such transactions.