Guest lecture European and International Tax Law

Gastcollege Europees- en Internationaal belastingrecht.

-Arm’s length doesn’t work, but we can’t change it.

-Everyone want a fair share/fair price, but want we shifting profits ourselfs. If we make
profits, want we to share it?

Allocate profits = arm’s length, not tranfser pricing. Transfer Pricing= What one paid for a
thing to another (Fair prices).

A selling things to B etc. Transfer Pricing is what is paying for it.
A
Which prices must we want to pick.


B



All costs are in high taks country’s and the income in low taks country’s, that’s a thing
everyone can do. A paid to B, B had income and A expence.

Arm’s lentgh said: There is a rigth transfer price and a wrong transfer price, method’s with a
range gives a right transfer price. You can have a price, but it must bu a rigth price. The price
have to be the same as when A and B weren’t connected.

In principle Transfer pricing has nothing to do with tax, but because country’s miss the
incoming tax the transfer pricing story is going tot he subject Tax.

Global supply chain problems and the seperation problems:


Apple
:This is how we see Apple in the books and in examples, but
How Apple really works is like what we see here (under):

A B C D


E F G

But this is how we Apple must see in real: Apple
A–B–C–D–E–

F – G – H…