Global

Details

  • Service: Tax, Global Transfer Pricing Services
  • Type: Video
  • Date: 6/12/2012
  • Length: 2:02 Minutes

Fast tracking an APA 

Transcript:

Sean Foley

Global Leader,

KPMG’s Global Transfer Pricing Services

 

SEAN FOLEY: I think the ATO, the Australian Tax Office, had led the charge here by putting together a pilot program and really using risk assessment to try to drive cases that could be dealt with more quickly. One of the problems you always have with a fast track is that people who are on the slow track are not happy. They think they’ve gotten jumped over. But I do think that it’s a very important part of managing a process, is that you need to sort out the cases that are easier from the cases that are harder, and the easier cases need to get done quickly. I think a very straightforward example of this is a renewal, where facts have not changed. Coming in for a renewal should be something that should be certainly fast tracked, and yet we have seen in some of the more mature programs a slow track, and in that situation as well.


Francois Vincent

KPMG’s Leader, Global Transfer Pricing

Dispute Resolution

 

FRANCOIS VINCENT: The OECD right now has embarked on a tax simplification exercise that includes transfer pricing. I think as part of that tax simplification exercise, we also have to look at APAs and how APAs are currently being conducted, with a view to simplifying the process, to make it a simpler, swifter process. Now it can very much be a risk based approach and determine certain guidelines to allow a swifter and speedier resolution for all involved. That, one of the benefits of that, obviously, is that it will reduce inventory of cases that competent authorities have to deal with, it will enhance the experience for taxpayers, and I think as long as you have the right parameters around the process and around which cases you allow to move swifter than others, I think for tax authorities and taxpayers this can be a real win-win situation.

Sean Foley Global Leader, KPMG’s Global Transfer Pricing Services and Francois Vincent KPMG’s Leader, Global Transfer Pricing Dispute Resolution give their views on fast tracking APAs and tax simplification.

 

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