2010 revision of the OECD guidelines: Is my business restructuring going to lead to an indemnification payment or exit charge?

Andrew Hickman, Richard Murray, John Neighbour and Michael Freudenberg, KPMG, London and Dusseldorf

This article is the last in a series of three discussing what the revised guidance from the OECD means for taxpayers and practitioners. Our first article 1 focused on revisions to Chapters I – III of the Guidelines, which provide more detailed advice on how to perform a comparability exercise and how to apply the different transfer pricing methods in practice. Our second 2 focused on the discussion of arm’s length allocations of risk within multinational groups found in Chapter IX.

This article concentrates on the remainder of Chapter IX, looking at the transfer pricing of business restructurings. We focus on identifying where, according to the OECD, a business restructuring could lead to an indemnification payment or exit charge.

Due to the international nature of this question, we have enlisted Michael Freudenberg, an expert on business restructurings from KPMG in Germany, to assist with this article and provide a different perspective…

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Disclaimer

1 Published in Transfer Pricing International Journal Vol.11, No.11, November 2011.
2 Published in Transfer Pricing International Journal Vol.11, No.12, December 2011.

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