Transfer pricing of intangible assets: Is there a need for harmonization at the EU level?
(2024) JAEM01 20241Department of Law
Faculty of Law
- Abstract
- Encouraging Innovation and Research and Development stands as a priority of the EU and it is considered a cornerstone of economic growth and prosperity, but can it be promoted at any price?
Due to the increasing importance of intangible assets in international trade, multinational corporations have been setting the transfer prices for intra-group transactions of such assets resorting to tax planning and profit shifting in order to gain the maximum profit possible, and some Member States have been indulging in such practices by approving transfer pricing arrangements that do not properly allocate profits in order to foster and attract more R&D investments.
As the value of intangibles is hard to assess due to their uniqueness and lack... (More) - Encouraging Innovation and Research and Development stands as a priority of the EU and it is considered a cornerstone of economic growth and prosperity, but can it be promoted at any price?
Due to the increasing importance of intangible assets in international trade, multinational corporations have been setting the transfer prices for intra-group transactions of such assets resorting to tax planning and profit shifting in order to gain the maximum profit possible, and some Member States have been indulging in such practices by approving transfer pricing arrangements that do not properly allocate profits in order to foster and attract more R&D investments.
As the value of intangibles is hard to assess due to their uniqueness and lack of material characteristics, and there are no common binding rules on the assessment of their transfer price, it is hard to stop MNEs from taking advantage of such situation and resorting to advantageous transfer pricing and tax avoidance.
This Thesis aims to present this issue and the available tools that the EU owns to combat it, such as the fine line existing between advantageous transfer pricing arrangements and EU infringements in relation to the State Aid prohibition from Article 107 TFEU. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9155549
- author
- Barrobés Carbonell, Mireia LU
- supervisor
-
- Mariya Senyk LU
- organization
- course
- JAEM01 20241
- year
- 2024
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Transfer pricing, Intellectual Property, Profit Shifting, Tax Law.
- language
- English
- id
- 9155549
- date added to LUP
- 2024-06-25 11:56:17
- date last changed
- 2024-06-25 11:56:17
@misc{9155549,
abstract = {{Encouraging Innovation and Research and Development stands as a priority of the EU and it is considered a cornerstone of economic growth and prosperity, but can it be promoted at any price?
Due to the increasing importance of intangible assets in international trade, multinational corporations have been setting the transfer prices for intra-group transactions of such assets resorting to tax planning and profit shifting in order to gain the maximum profit possible, and some Member States have been indulging in such practices by approving transfer pricing arrangements that do not properly allocate profits in order to foster and attract more R&D investments.
As the value of intangibles is hard to assess due to their uniqueness and lack of material characteristics, and there are no common binding rules on the assessment of their transfer price, it is hard to stop MNEs from taking advantage of such situation and resorting to advantageous transfer pricing and tax avoidance.
This Thesis aims to present this issue and the available tools that the EU owns to combat it, such as the fine line existing between advantageous transfer pricing arrangements and EU infringements in relation to the State Aid prohibition from Article 107 TFEU.}},
author = {{Barrobés Carbonell, Mireia}},
language = {{eng}},
note = {{Student Paper}},
title = {{Transfer pricing of intangible assets: Is there a need for harmonization at the EU level?}},
year = {{2024}},
}