Business Restructuring: En komparativ analyse af national skatteret og OECD Transfer Pricing Guidelines

Kamilla Marie Johansen

Student thesis: Master thesis

Abstract

In this master’s thesis I explore the taxation of a particular area in tax law, namely Business Restructuring. Business Restructing is a relative new area that is incorporated in the OECD Guidelines in 2010 with chapter IX. This area is necessary because of increased traffic between multinational companies. These transfers between the dependent companies have to be controlled in certain ways. The rules in chapter IX tries to give the companies a way to control and find the correct price for the transfers. Because of the recent implementation of the area I investigate the Danish tax law and investigate how it corresponds to the guidelines in OECD Transfer Pricing Guidelines. I go through the taxation of the central concept of “something of value” and investigate the taxation in Danish tax law. The master thesis shows that there are laws that regulate the different parts of “something of value” The tangible assets are regulated through the State Tax and the special law depended on the kind of tangible assets that are transferred. The State Tax is the main tax law and the tax law that decides that every income should be taxed when it is transferred. The tangible assets are also the least complex when talking about the pricing methods, because there are often independent comparable companies. The intangible assets are more complex and are regulated by the Depreciation Act. The complexity arises, when the intangibles are set to be priced, because they often do not have a specific value. The price can be valued after the guides in Danish tax law. The Depreciation Act is also the dominating law for ongoing concern that in Danish tax law is regarded as the same as goodwill. Additionally guidelines assist the pricing of transfers. The last part of “something of value” is outsourcing, where the transfer is rated between a part sale and a wholesale of the company. The last part of the analysis focuses on the central law in Danish tax law in Transfer Pricing, Assessment Act section 2. Section 2 proves to be sufficient to regulate Business Restructuring, but it may have to be updated in a few years, so it is comparable to the new chapters in OECD guidelines. Furthermore the Danish tax authorities are asked to amend their exit taxation on the transfers that have not a feasible income.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2013
Number of pages87