Description
Gain a better understand cost sharing arrangements in the current legal and tax environment.Costsharing arrangements are one of the common sources of transfer pricing controversies. Recent Tax Court cases have called into question the validity of certain provisions of the costsharing regulations. This topic will walk through the current costsharing regulations under the U.S. transfer pricing guidelines in detail, identify the provisions that have been called into question, and discuss impacts of the OECD BEPS initiatives on the structure of costsharing arrangements. This course is beneficial for individuals who are new to costsharing arrangements or who want to understand costsharing arrangements in the current legal and tax environment.
Date: 2022-09-20 Start Time: End Time:
Learning Objectives
Overview of Cost-Sharing Arrangements (“CSA”) (U.S. Treas. Regs. §1.482-7(a))
• Brief History of CSAs
• Example of a Typical Cost Sharing Structure
Cost-Sharing Arrangement
• Rules of CSA (U.S. Treas. Regs. §§§1.482-7(B),(K),(L))
• Contractual Requirements
• Documentation Requirements
• Accounting Requirements
• Reporting Requirements
Treatment of SBC and Altera Court Case
Platform Contributions (“PCTs”) (U.S. Treas. Regs. §1.482-7(C))
Transfer Pricing Methods for PCTs (U.S. Treas. Regs. §1.482-7(G))
• Best Method Analysis
• Comparable Uncontrolled Transaction Method
• Income Method
• Acquisition Price Method
• Market Capitalization Method
• Residual Profit Split Method
• Amazon Court Case
Form of Payment of PCTs (U.S. Treas. Regs. §1.482-7(H))
• Fixed vs. Contingent
Transition Rules (U.S. Treas. Regs. §1.482-7(M)
Current Trends in CSAs
OECD Beps Impact on Cost-Sharing
AIPB ,CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Mumi Hemrajani-DLA Piper LLP (US), Madhura Maitra – DLA Piper LLP, Wei Wang – DLA Piper LLP (US)
