Transfer Pricing and Business Restructurings

S. 67Chapter 2: Remunerating the Restructuring Itself

Gianni De Robertis/Rocco Talia

S. 681. Introduction

The purpose of this chapter is to present a case study regarding the TP analysis for remunerating a business restructuring. After a brief illustration of the theory and regulation underlying the analysis of this reorganization and of some interesting case law, a case study with a numerical example will be provided.

The report on the TP aspects of business restructurings was incorporated in Chapter IX of the 2010 OECD TPG. Public discussions within the OECD on TP issues raised by these date back to 2005. Although many years have passed since these events, they are still a trending topic in the TP world. This is probably because MNEs are almost constantly engaged in restructuring projects.

Managing change is often a key feature of successful companies. In many sectors, MNEs must be able to evolve and adjust to a changing environment, anticipate consumer needs, and differentiate themselves from competitors. Enterprises, especially MNEs, are often very complex organizations. They are an ensemble of people and assets that constantly need to interact together to pursue a single goal. In order to be...