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Peters Advisors is an independent provider of transfer pricing and valuation services.
We have advised many of the world s leading companies on transfer pricing and valuation matters.

Transfer Pricing

Our strength in transfer pricing lies in our committed advisors with specialized experience and expertise in transfer pricing compliance, planning, and disputes.
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Valuation

Valuations can be a critical component of effective tax planning. The valuation professionals at Peters Advisors provide a full range of valuation services.
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Latest News

Treasury Official Indicates that IRS Not Planning to Alter Section 6662 Documentation Requirements in Near-Term
By Dan Peters
News: BNA reported that Brian Jenn, attorney adviser in Treasury's Office of International Tax Counsel, told the ABA Section of Taxation at its May 8th meeting that “our hands are full” with the implementation of the Country-by-Country (“CbC”) reporting template for US-parented taxpayers with consolidated revenues greater than approximately $840M annually. Jenn indicated that only after the implementation of CbC would the Treasury begin to evaluate the OECD “master-file/local-file” approach to documentation and its relation to Section 6662.

Views: The multiple degrees of uncertainty regarding what will be required to satisfy tax authorities during the transition to a post-BEPS world can be confounding to both taxpayers and advisors. This transition period will be highly volatile for taxpayers who need to be more transparent in disclosing new information in different ways to tax authorities. Integration between results in the CbC report and the rationale for these outcomes in the transfer pricing documentation will be critical – even if current US documentation requirements don’t necessitate addressing these issues.

To read the full article, click here.

OECD’s Proposed Changes to Cost Contribution Arrangements Generate Controversy
By Kurt Wulfekuhler
News: In a webcast update by the Organization for Economic Co-operation and Development (“OECD”) on its Base Erosion and Profit Shifting (“BEPS”) initiative on June 8, 2015, Andrew Hickman, Head of the Transfer Pricing Unit, acknowledged the numerous taxpayer comments received on the OECD’s Discussion Draft on Revisions to Chapter VIII of the Transfer Pricing Guidelines on Cost Contribution Arrangements (“Discussion Draft”). The Discussion Draft proposes text for an updated Chapter VIII on cost contribution arrangements (“CCAs”) in the OECD’s Transfer Pricing Guidelines. The proposed text would require contributions to be measured at value rather than at cost so that the outcomes for participants in a CCA do not differ significantly from those for parties outside a CCA. While agreeing that any pre-existing intangible property should be transferred at value, a number of taxpayers raised concern about requiring ongoing payments to be made at value instead of cost, citing third-party examples of CCAs done at cost to support their case.

Views: Tax administrations and taxpayers should be able to reach a compromise that preserves the commercial effectiveness of CCAs while addressing the OECD’s greatest concerns about BEPS. One of the most important objectives of the BEPS initiative is to prevent the transfer of intangible property within a multinational enterprise at less than value. Taxpayers concur that any pre-existing intangible property should only be contributed to a CCA at value, even though there may be some disagreement on the methods for valuing such intangible property. Requiring ongoing contributions to be made at value instead of cost, though, removes the commercial efficiencies of a CCA without furthering one of the principal objectives of the BEPS initiative. Greater emphasis should be placed on how to value the pre-existing intangible property instead of the ongoing development contributions.

To read the full article, click here.

India Proposes Changes to Arm’s-Length Price Evaluation
By Jared Walls
News: On May 21, 2015, India’s Central Board of Direct Taxes (“CBDT”) issued a draft scheme for proposed rules that would change the way in which an “arm’s-length” price of an intercompany transaction is evaluated for Indian transfer pricing purposes. The new framework, which was initially announced as part of India’s 2014 Finance Bill, would replace the single-year arithmetic mean with the concept of a multi-year average arm’s-length range.

Views: Most Organization for Economic Cooperation and Development (“OECD”) member countries, including the United States, allow the use of multi-year arm’s-length ranges to benchmark the results of a taxpayer against a set of comparable companies or transactions. So the move by India is a noteworthy step toward international conformity.

To read the full article, click here.

Australia Introduces Draft Anti-Avoidance Legislation
By Sean Faulkner
News: On May 12, 2015, Australia’s Treasury Department released draft legislation aimed at targeting multinationals that are suspected of using artificial or contrived arrangements to avoid a taxable presence in Australia. The Tax Laws Amendment (Tax Integrity Multinational Anti-avoidance Law) Bill 2015 stems from Australian Tax Office investigations which identified 30 multinationals as having tax schemes in place to avoid paying their full Australian tax liability.

Views: The ATO continues to be aggressive and at the forefront of unilaterally drafting and implementing transfer pricing regulations that are designed to ensure that the Australian tax base is not artificially eroded. According to BNA, Treasurer Joe Hockey stated that "under this new law, when we catch companies cheating, they will have to pay back double what they owe, plus interest."

To read the full article, click here.

Transfer Pricing Implications of the BEPS Action Plan
By Dan Peters and Kurt Wulfekuhler
Determined to eliminate so-called double non-taxation as well as no or low taxation associated with practices that are perceived to segregate taxable income from the activities that generate them, the Group of Twenty (“G20”) and the Organization for Economic Co-operation and Development (“OECD”) released their Action Plan on Base Erosion and Profit Shifting (“BEPS Action Plan”) in 2013. Included in the BEPS Action Plan are several provisions related to transfer pricing:

Action 4: Limit base erosion via interest deductions and other financial payments;
Action 8: Assure that transfer pricing outcomes are in line with value creation – Intangibles;
Action 9: Assure that transfer pricing outcomes are in line with value creation – Risks and capital;
Action 10: Assure that transfer pricing outcomes are in line with value creation – Other high-risk transactions; and
Action 13: Re-examine transfer pricing documentation.

To read the full article, click here.

CRA Addresses Use of Multiple-Year Data
By Sean Faulkner
News: On January 29, 2015, the Canada Revenue Agency published Transfer Pricing Memorandum (“TPM”)-16 pertaining to the role of multiple-year data in transfer pricing analyses. TPM-16 concludes that while multiple years of data pertaining to potentially comparable transactions may be useful in selecting or rejecting comparables, or determining the degree of comparability, transfer prices for a given year should be set and evaluated using a single year of data.

View: CRA’s TPM-16 clarifies and reinforces its position that using a single year of data when benchmarking the profitability of the tested party against comparable transactions (typically through the application of the TNMM) is the most appropriate treatment. Despite the general acceptance of 3 or 5-year averages of comparable financial results by other tax authorities, CRA’s position is that a proper analysis of the comparability of the selected companies will eliminate the need for averaging of financial results in benchmarking. A similar point is made with regards to eliminating the need for statistical tools, such as the inter-quartile range.

To read the full article, click here.

U.S. Treasury Department Representatives Provide a Mixed Review of the BEPS Initiative
By Jared Walls
News: During what has otherwise been a relatively quiet month for the Organization for Economic Cooperation and Development’s (“OECD”) Base Erosion and Profit Shifting (“BEPS”) initiative, representatives of the U.S. Treasury Department have managed to bring BEPS back into focus. In an interview with Kevin Bell of Bloomberg BNA—published on April 16 (23 Transfer Pricing Report 1579)—Robert Stack (Deputy Assistant Secretary for International Affairs) and Michael McDonald (Financial Economist in the Office of Tax Analysis) provided a qualified, yet generally affirmative assessment of the OECD’s Country-by-Country (“CbC”) reporting initiative. On April 16, however, Stack presented at the 15th Annual Tax Planning Strategies – U.S. and Europe conference in Munich, where he offered a less enthusiastic assessment of the broader tenor of the BEPS initiative.

Views: In February, Brian Jenn, an Attorney-Adviser in the Treasury Office of International Tax Counsel, announced with little fanfare that U.S. multinationals would be required to comply with the OECD’s CbC reporting requirements for fiscal years ending on or after December 31, 2016. The comments by Stack and McDonald provide some additional insight into the process and reveal a certain level of support and optimism for the CbC reporting template within the U.S. Treasury Department.

To read the full article, click here.

Modified Nexus Approach for IP Regimes:
What It Means and What Happens Next
By Kurt Wulfekuhler
News: The Group of Twenty (“G20”) Leaders’ Summit in Brisbane in November 2014 may be best remembered for a forlorn President Putin of Russia dining alone during lunch. But the leaders did reach important agreement on a number of issues relating to base erosion and profit shifting (“BEPS”). Among them was the endorsement of a compromise solution under BEPS Action 5, which is intended to counter harmful tax practices by requiring substantial activity for any preferential regime, among other steps. The compromise, known as the Modified Nexus Approach, requires nexus between the location of the activities generating the income eligible for preferential tax treatment and the jurisdiction offering the preferential regime, provides a grandfathering clause of five years, and prohibits new entrants to regimes not meeting the approach after June 2016.

Views: Taxpayers should not necessarily rush into existing preferential regimes for intangible property (“IP”), such as patent boxes, by June 2016. The Forum on Harmful Tax Practices (“FHTP”) of the Organization for Economic Co-operation and Development (“OECD”) is considering measures to discourage new entrants intent on benefiting from grandfathering. Additionally, regimes that do not meet the Modified Nexus Approach will have an abolition date five years after the closing date for new entrants, or June 2021, so any benefits from grandfathering will be limited.

To read the full article, click here.

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Country-by-Country Reporting is Here
By Kurt Wulfekuhler
News: At the February meeting of the Group of Twenty (“G20”) Finance Ministers in Istanbul, the Organization for Economic Co-operation and Development (“OECD”) provided an update on efforts to combat base erosion and profit shifting (“BEPS”), including the OECD’s new Guidance on the Implementation of Transfer Pricing Documentation and Country-by-Country Reporting. The implementation recommendations follow the OECD’s development of a three-tiered approach to documentation comprising a master file available to all relevant tax administrations; a local file for each country; and a country-by-country (“CbC”) report, providing for each tax jurisdiction in which the multinational enterprise (“MNE”) does business, the amount of total revenue, profit before income tax, income tax paid and accrued, headcount, capital, retained earnings, and tangible assets, along with a functional matrix for the group.

Views: If you like transfer pricing documentation, you are going to love CbC reporting. The new report will require large taxpayers to provide financial information about each of their jurisdictions and functional information about each of their entities, which will be shared with an array of tax administrations. This increased transparency is intended to assist revenue bodies in assessing transfer pricing risks, deploying audit resources most effectively, and targeting their audit inquiries. Taxpayers have expressed concern that the information could be used for other purposes but now that CbC reporting is here, they will need to accept the reality of the CbC report. That means collecting and reporting the necessary information and considering carefully their current transfer pricing structures and transfer pricing documentation to make sure that they support the distribution of profits among members of the group.

To read the full article, click here.

United Kingdom Expects to Introduce Punitive “Diverted Profits Tax”
By Jared Walls
News: In his parliamentary budget speech on March 18, the UK Chancellor of the Exchequer confirmed the introduction of a new 25 percent Diverted Profits Tax (“DPT”) into the country’s 2015 finance bill. The DPT is intended to apply to profits of multinational enterprises that are deemed to have been artificially shifted out of the United Kingdom to foreign tax jurisdictions.

A DPT Consultation Draft was released on December 10, 2014 and a parliamentary debate was held on January 7. A revised draft will be published and debated on March 24 and submitted for parliamentary approval on March 25. Once approved, the new tax is scheduled to take effect on April 1.

Views: Although the DPT has been dubbed the “Google Tax” by members of the media, taxpayers should be aware that its scope extends well beyond the digital economy.

To read the full article, click here.

Finance Monthly Interview with Dan Peters on Company Taxation and Transfer Pricing
By Dan Peters
In an interview with Finance Monthly, Dan Peters of Peters Advisors, explains how the worldwide transfer pricing system works, what the OECD's Base Erosion and Profit Shifting project means, and the benefits of defensible transfer prices and Advance Pricing Agreements.

To read the full article, click here.

CRA Outlines Rigorous Approach to Intra-group Services
By David Talakoub
News: On January 29, 2015, the Canada Revenue Agency (“CRA”) published Transfer Pricing Memorandum (“TPM”)-15 on intra-group services and section 247 of the Income Tax Act. TPM-15 is intended to clarify the CRA’s policy on several audit and tax issues commonly encountered during the audit of intra-group services. The new memorandum expands on the CRA’s existing transfer pricing guidance and outlines a detailed and rigorous approach to determining and supporting intra-group services charges.

Views: While the framework outlined in TPM-15 has the advantage of providing taxpayers with more certainty, the timing of this release is troublesome in light of the recent Organization for Economic Co-operation and Development (“OECD”) discussion draft on low value-adding intra-group services.

To read the full article, click here.

European Commission and Tax Ruling Transparency
By Sean Faulkner
News: On March 18, 2015, the European Commission (“EC”) presented a package of tax transparency measures to help combat corporate tax avoidance and harmful tax competition within the European Union (“EU”). This package includes a proposal for the requirement of sharing of tax rulings between EU members, potential for public disclosure of tax information for multinational companies, quantifying the scale of tax evasion and avoidance, and reviewing the Code of Conduct on Business Taxation.

Views: The most significant information coming from the EC transparency measures is the legislative proposal to improve cooperation between EU member countries and provide for the required sharing of tax ruling information. The EC is proposing that countries be required to automatically exchange information on tax rulings every three months and provide a forum for requesting additional information on the rulings.

To read the full article, click here.

The OECD Issues a Discussion Draft on the Use of the Profit Split Method
By Jared Walls
News: On December 16, 2014, the OECD issued a Public Discussion Draft on the Use of Profit Splits in the Context of a Global Value Chain. The BEPS Action 10 discussion draft sets forth a number of scenarios under which the profit split method may serve as the most appropriate method to ensure that transfer pricing outcomes are in line with value creation. Public comments were invited for submission by February 6, and a public consultation is scheduled for March 19-20.

Views: Despite taking definitive if controversial positions in many of its previous BEPS discussion drafts, the OECD appears to be still in the process of staking out its position with regard to the use of the profit split method.
To read the full article, click here.

District of Columbia Grants Stay in Transfer Pricing Cases
By Sean Faulkner
News: On January 15th a panel of judges in the District of Columbia Office of Administrative Hearings granted a stay in four cases challenging the use of Chainbridge Software LLC to conduct audits for the D.C. Office of Tax and Revenue (“OTR”). The judges, in the interest of “judicial economy” and “efficiency,” determined that the actions should be stayed pending the outcome of three other cases under appeal in the district.

Views: The continuing challenges to the “Chainbridge method” in D.C. has underscored the need for state tax authorities to conduct proper transfer pricing analyses that are consistent with the principles outlined in the Section 482 regulations and OECD Guidelines.
To read the full article, click here.

United States Expresses Reservations over Certain Sections of OECD Draft
By Dan Peters
News: A U.S. Treasury official suggests that the United States will not agree to certain aspects of the OECD’s current discussion draft on risk, recharacterization, and special measures. At the American Bar Association tax section conference in Houston January 30, Brian Jenn of the Treasury's Office of International Tax Counsel and a U.S. delegate to the BEPS project, spoke specifically of a Special Measures section in the draft that included language that may allow tax administrations to disregard certain transactions in which a company has structured its operations to shift risk among related parties.

Views: It is encouraging to see Treasury officials directly challenge certain potentially over-reaching aspects of the OECD’s BEPS project.
To read the full article, click here.

The OECD Holds Public Consultation on Discussion Draft on Dispute Resolution
By David Talakoub
News: On January 23, 2015, the Organization for Economic Cooperation and Development (OECD) held a public consultation asking for ideas on how to make dispute resolution mechanisms more effective. The public consultation followed written comments submitted by more than 50 practitioners, taxpayers, and business groups in response to the OECD’s discussion draft on Base Erosion and Profit Shifting (“BEPS”) Action 14.

Views: In the midst of a period that has witnessed increased disputes and a growing inventory of Mutual Agreement Procedure (“MAP”) cases, Action 14 represents a critical component of the OECD’s BEPS initiative. In a post-BEPS environment, effective dispute resolution mechanisms will take on even greater importance as the OECD continues to advance its Action Plan.
To read the full article, click here.

Hang-ups over Mark-ups?: The OECD Issues a Discussion Draft on Intra-Group Services
By Kurt Wulfekuhler
News: As part of its Action Plan on Base Erosion and Profit Shifting, the Organization for Economic Co-operation and Development (“OECD”) identified charges for intra-group services as contributing to the erosion of the tax base of payor countries. In November 2014, the OECD issued a public discussion draft on Proposed Modifications to Chapter VII of the Transfer Pricing Guidelines Relating to Low Value-Adding Intra-Group Services. Seeking to provide taxpayers with the ability to make appropriate service charges while helping tax administrations avoid base erosion, the draft offers a method for charging an array of administrative support services based on the costs of providing such services. The method also requires a uniform profit mark-up of between 2 and 5 percent. A number of the comments received by the OECD called for the option of applying no mark-up at all.

Views: Do not let its humdrum title fool you: the OECD discussion draft on intra-group services is an important development in transfer pricing.
To read the full article, click here.

Peters Advisors to Co-Host Transfer Pricing Seminar
(November 25, 2014)
On December 4, 2014, Kurt Wulfekuhler of Peters Advisors will present with Elko & Associates on the tax and accounting issues and key decisions for companies expanding beyond U.S. markets. The presentation will be held at Penn State Great Valley in Malvern, Pennsylvania. Kurt will address the challenges and opportunities from the Guidance on Transfer Pricing Documentation and Country-by-Country Reporting and what the Guidance on Transfer Pricing Aspects of Intangibles means for IP planning, management and valuation.

Peters Advisors Wins Numerous Industry Awards for Excellence
(November 25, 2014)
Peters Advisors was recently named the Best Transfer Pricing and Valuation Firm in the U.S. by Acquisition International--one of several awards received by the Firm in 2014. We recognize that our individual and Firm success would not be possible without our clients, so we would like to take this opportunity to express our sincere gratitude. We look forward to continued collaboration and success in 2015.

Valuation of Firms within a Multinational Group
(November 25, 2014)
In an article dated November 25, 2014, Kurt Wulfekuhler discusses why it may not be appropriate to apply uniform valuation techniques to value different members of a multinational group. Applying valuation methods uniformly across different members of a multinational group may not always produce reliable results. Affiliates may perform different functions, use different assets, and assume different risks. The valuation methods and assumptions need to reflect those differences. Click the link above to read the full article.

Operational Transfer Pricing: Practical Applications
(November 25, 2014)
In an article dated November 25, 2014, Sean Faulkner and Jared Walls examine three practical applications of operational transfer pricing and how they can be used to improve tax efficiency and the allocation of resources across the organization. Click the link above to read the full article.

Transfer Pricing: What You Need to Know in 2014
(October 27, 2014)
On October 27, 2014, Kurt Wulfekuhler of Peters Advisors partnered with Alston & Bird for a webcast covering recent transfer pricing developments, including the Organization for Economic Cooperation and Development's Base Erosion and Profit Shifting recommendations. Click the link above to view or download the full presentation.

Peters Advisors Presents to Multistate Tax Commission
(October 6, 2014)
On October 6, 2014, Peters Advisors was among seven advisory firms that presented to the Multistate Tax Commission ("MTC") Arm's-Length Adjustment Service ("ALAS") Advisory Group. The Advisory Group is in the process of developing and implementing a coordinated audit approach for the member states to employ for transfer pricing. The transfer pricing approach will likely involve a combination of employee resources and outside economists. Extensive details regarding these plans and other materials developed by the ALAS group, as well as presentations given by outside firms are available on the MTC website. Click the link above to view or download our full presentation.

Peters Advisors Adds New Partner
(December 17, 2013)
We are pleased to announce that Kurt Wulfekuhler has joined the Firm. Kurt brings a wealth of transfer pricing experience and adds an important presence for Peters Advisors within the Philadelphia area. Click on the link above to read the full announcement.

OECD Project on Intangibles: Public Comments Released
(November 15, 2013)
On October 22, 2013 the OECD published comments received from the public on its Revised Discussion Draft on Transfer Pricing Aspects of Intangibles. In the November 14, 2013 edition of Global Tax Weekly, Jared Walls and Andrew Weaver of Peters Advisors provide insight into some key conceptual comments submitted by the business community and discuss the next steps for the OECD Project on Intangibles.

Presentation to the New Jersey Chapter of the Tax Executives Institute (TEI)
(November 10, 2013)
On November 8th, Sean Faulkner and Jared Walls presented to the New Jersey Chapter of the Tax Executives Institute (TEI) on the importance of operational transfer pricing in managing the day-to-day aspects of transfer pricing planning, compliance, documentation, and audit support.
View Presentation View the Presentation.

International Operations Account Conference Peters Advisors Presentation
(October 29, 2013)
Peters Advisors presented on the topic of Transfer Pricing to a group of finance and tax professionals attending an International Accounting Operations conference in New York City on October 28, 2013.

Peters Advisors Organizational Announcement
(October 3, 2013)
2013 continues to be a banner year for the Firm, with Peters Advisors recently having been recognized with a number of industry awards, and Dan Peters and Sean Faulkner having been selected in Legal Media Group's Guide to the World's Leading Transfer Pricing Advisers. Click on the link above to read the full announcement. Click on the link above to read the full announcement.

Transfer Pricing Safe Harbors: The New Arm s Length Standard?
(April 26, 2013)
In the April 25, 2013 edition of Global Tax Weekly, Jared Walls of Peters Advisors examines the current OECD and U.S. safe harbor initiatives and their potential implications for multinational corporations.

Peters Advisors Issues Article on Best Practices in Transfer Pricing Compliance.
(March 27, 2013)
The article discusses key areas MNCs should focus on to improve their transfer pricing compliance strategy. Read the article to learn more about how Peters Advisors helps its clients assess their transfer pricing risk profile.

Dan Peters Panelist at IFC New York
(March 2, 2013)
Dan Peters recently participated in a panel discussion at the 41st Annual Conference of the International Fiscal Association (“IFA”) in New York City. Dan’s panel focused on the transfer pricing challenges related to service charges and shareholder activities.

Peters Advisors Adds New Partner
(February 7, 2013)
We are pleased to announce that Jared Walls has joined the Firm. Jared's addition will allow us to better serve our clients' needs in our growing business.
View Article View the announcement from Dan Peters.
View Jared's Bio.

Peters Advisors: Firm of the Year
Peters Advisors wins the Acquisition International M&A 2012 Transfer Pricing Firm of the Year: New York. We would like to thank our clients for this honor.
View Article Read Dan Peters’ interview with Acquisition International Magazine.
View the press release from Acquisition International.

Transfer Pricing News Flash Archives

Peters Advisors LLC regularly updates its clients on new developments involving transfer pricing and tax valuation, and provides our insights regarding the pragmatic implications of these changes for managing their business.

View Article View Issue 1 July 2011
View Issue 2 April 2012
View Issue 3 December 2012

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