TEI Submits Comments to the OECD regarding the Transfer Pricing aspects of Financial Transactions

On September 6, 2018, TEI filed comments with the OECD regarding a recent public discussion draft (the Draft) under Actions 8-10 of its base erosion and profit shifting project (better known as “BEPS”). The OECD Draft addressed the transfer pricing aspects of financial transactions. TEI’s submission focused on the need for clear guidance from the OECD on the many issues discussed in the Draft, including the potential recharacterization of a financial instrument, the proper interest rate on a debt instrument, the treatment of guarantees and their related fees, as well as the proper approach to captive insurance arrangements.

TEI’s comments were prepared under the aegis of its European Direct Tax Committee, whose chair is Giles Parsons. Benjamin Shreck, TEI Tax Counsel, coordinated the preparation of TEI’s submission.

Download the letter.