TEI Comments on BEPS Action 10: Commodity Transactions

On On February 3, 2015, TEI submitted comments to the OECD on its document BEPS Action 10: Discussion Draft on the Transfer Pricing Aspects of Cross-Border Commodity Transactions. TEI commended the OECD for its work on the draft as a step in the right direction. Among other things, TEI’s comments focused on the differences between setting transfer prices for commodities for which price quotes are available on an exchange, and other goods for which prices are available through pricing agencies. The Institute noted that exchange quoted prices are much more likely to be true arm’s length prices than those available from pricing agencies and recommended the OECD take into account those differences in final guidance.

TEI’s comments were prepared under the aegis of TEI’s European Direct Tax Committee, whose chair is Nick Hasenoehrl. Benjamin R. Shreck, TEI Tax Counsel, coordinated the preparation of TEI’s comments.

Download the submission.

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