For episode 13, we're getting personal! We're digging into why we started this podcast and the unplanned beginnings of our careers in transfer pricing . Get our "uncontrolled opinion" on why the TP world needs more open dialogue and less secrecy. It's time to pull back the curtain!
In this episode of Uncontrolled Opinions , we welcome Clark Armitage a leading international tax and transfer pricing lawyer to discuss about economic substance in the context of transfer pricing. We dive into the economic substance doctrine —its origins, why it was codified in Section 7701(o), and how it intersects with modern transfer pricing, BEPS initiatives, and risk management. The conversation also covers current cases where the IRS has asserted the lack of economic substance in challengi...
In this episode, we refresh on Amount B / Simplified and Streamline Approach (SSA). We cover what has happened since February 2024. For a deeper dive, explore the resources below, including guidance, fact sheets, tools, and the full OECD report on Amount B: OECD Pillar One – Amount B OECD Consolidated Report on Amount B US Adoption of Amount B ( Notice 2025-04 ) US Executive Order on “ Global Tax Deal ” US Senate confirmation hearings for treasury secretary transcript...
In this episode of Uncontrolled Opinions , hosts Mikhail and Silvana are joined by their colleague Martin Ibarguren , an experienced transfer pricing practitioner with deep expertise in intercompany (IC) financial transactions. Together, they dive into the foundational elements of transfer pricing and documenting intragroup loans. From determining whether a transaction is truly “debt” vs. “equity” to handling limited data for benchmark analyses, this discussion highlights the key factors and pra...
In this episode, Mikhail and Silvana dive into the 2024 European Court of Justice (ECJ) decision on Apple’s contested tax arrangements in Ireland. While the heart of the matter centers on “illegal state aid,” the conversation highlights key transfer pricing concepts such as the arm’s length principle, the role of cost sharing agreements, and the interplay between EU competition law, MNE corporate tax/TP structures and national tax policies. Mikhail and Silvana also reflect on how this case under...
In this episode of Uncontrolled Opinions , Mikhail and Silvana discuss the country risk premium adjustment when applying a Transactional Net Margin Method (TNMM). This discussion is particularly timely, given the recent emphasis on this adjustment in the OECD's Amount B guidance and its mandatory implementation in Brazil's transfer pricing regulations. Key Discussion Points OECD's Amount B Guidance Introduction to the Data Availability Mechanism (DAM) which provides for a country risk premiums a...
In this episode of Uncontrolled Opinions, we explore the pros and cons of using public and private company data in the context of a TNMM or CPM analysis in transfer pricing. We discuss practical aspects such as data availability, quality, reliability, the impact of size and operating leverage, and the importance of functional comparability in selecting comparable companies. We also cover practical considerations, from regulatory compliance challenges across jurisdictions to best practices for gl...
In this episode, Silvana and Mikhail explore how local country-specific rules impact the use of the Transactional Net Margin Method (TNMM) in transfer pricing. They discuss how different regulations affect the selection of comparables and the calculation of the arm’s length range, using examples from Greece, Malaysia, Italy, and Brazil. The episode highlights the importance of creating rigorous and defensible global/regional TNMM benchmarks incorporating local country-specific requirements. Take...
Is there a role for AI in transfer pricing ? We believe the simple answer to this question is – yes – but with a few qualifiers. In this conversation, we dive into what is AI, Generative AI and how next-word prediction can and may be used in a transfer pricing context. While we are generally optimistic, we also discuss the pitfalls of AI, including hallucinations, and why outsourcing judgment in evaluating comparables could be a slippery slope. We do not believe AIs have agency (yet) and advocat...
In this episode of Uncontrolled Opinions, hosts Mikhail and Silvana recap some of the highlights from the NABE 2024 Transfer Pricing Conference. Mikhail and Silvana explore several of the most interesting panels, including: · Geographic Market Adjustments in CPMs/TNMMs: Amount B and Beyond · AI will make DEMPE irrelevant · Business Acquisitions: Reconciling Transfer Pricing and Financial Reporting for Intangibles in the Context of Purchase Price Allocations · Risky Business: The State of the Ris...
What is “Control”? Nope we are not talking about Janet Jackson’s song . The raison d’etre in TP is pricing of “Controlled Transactions”. So, what is control? In this episode of Uncontrolled Opinions, hosts Silvana and Mikhail dive into the definition of “control” in the context of transfer pricing. We discuss the differences between “Control” and “Related Parties”. We also highlight different definitions and ownership thresholds for what constitutes control and/or related party. We also examine ...
Arm's Length Range: In this episode, Mikhail and Silvana dive into the intricacies of the arm's length range, the interquartile range, and various statistical methods used in transfer pricing. They discuss the importance of these concepts in their day-to-day practice and how the arm’s length range and statistical screening can help enhance reliability in a transfer pricing analysis.
In this Podcast, Silvana and Mikhail discuss the developments surrounding OECD Amount B guidance as it stands in March 2024. We explore the scope and criteria of Amount B, emphasizing its focus on tangible goods and excluding digital goods and services. We review the three-step pricing matrix and the industry groupings within the draft. We review the current articulation of the “risk adjustments” proposed in the Amount B paper and discuss its merits. 00:00 Initial Reactions to the Latest Amount ...
