On February 6, 2015, TEI submitted comments to the OECD regarding its BEPS public discussion draft entitled BEPS Action 10: Discussion Draft on the Use of Profit Splits in the Context of Global Value Chains. TEI’s comments focused on the need for transfer pricing analysis to begin with the contractual arrangements between related parties within a multi-national group. The Institute’s recommendations included that a profit split generally continue to be considered as a transfer pricing method of last resort.
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.