Tutors for this course include those who developed the syllabus and uniquely feature experts in each of the disciplines within transfer pricing, tax, economics and the law. Two tutors are ex-HMRC and one is now with OECD. This course not only prepares you for the exam (92% of participants passed the 2011 exam) but provides expert guidance that you can actually use in practice.

ADIT transfer pricing certificate / paper III option F
Programme

Day 1
9am – 10.30am: Fundamental sources – Ken Almand
● Tax treaties, based on OECD Model: Article 9; also Article 7; and “special relationship” in Articles 10-12
● OECD sources (Model Convention Commentary, TP Guidelines, Attribution of Profits to PEs, etc.)
● UN Model Commentary
● EU Codes of Conduct (EUJTPF)
● Local domestic law, illustrating various national examples where they substantially differ from OECD guidelines
● Selected leading cases e.g. National Semiconductor, Bausch & Lomb, Sundstrand, Xilinx, Glaxo, Ford, DSG, Roche, Aztech, Mentor Graphics, Ranbaxy
11am – 12.45pm: Transfer pricing methods – Jennifer Paul
● OECD methods; explanation of each method with worked examples
● Selecting method based on functional analysis results and information available (including reference to FAR analysis, entity characterisation and availability of comparables)
2pm – 4pm: The arm’s length principle and comparability – Graham Poole
● Interpretation of the arm’s length principle and current dialogue
● Associated enterprises
● The role of comparables; rationale and limits. Situations where no, or only imperfect, comparables are found
● Transaction analysis. Recharacterisation issues. To what extent should contractual terms between associated enterprises be respected?
4.20pm – 5.30pm: Compliance issues – Ken Almand
● TP documentation
● Penalties
● TP risk management
Day 2
9.00am – 10.30am: Functional analysis – Graham Poole
● Goals of functional analysis
● Analysis of functions, assets and risks
● Relating functional analysis to selection of transfer pricing method
● Entity characterisation (e.g. characterisation as “entrepreneur”, stripped risk manufacturer, commissionaire etc. etc.)
11am – 12.30pm: Comparability analyses in practice – Jennifer Paul
● Typical process proposed by the OECD
● Aggregation of a taxpayer’s transactions/use of non-transactional third party data
● Information on foreign associated enterprise
● Sources of information on comparable uncontrolled transactions: internal / external and “secret” comparables
● Comparability adjustments
● Arm’s length range
● Timing issues in comparability
● Compliance issues
1.45pm – 2.45pm: Avoiding double taxation/dispute resolution – Ken Almand
● Internal TP adjustments: corresponding adjustments, secondary adjustments
● Mutual agreement procedure
● Tax treaty arbitration, new Article 25(5)
● EU Arbitration Convention
● APAs (unilateral, bilateral, multilateral)
2.50pm – 3.50pm: Specific transactions: Part 1
Financing – Ken Almand
■ Loan pricing
− creditworthiness; thin capitalisation
− interest rates
− discussion: is thin capitalisation a transfer pricing issue?
4.15pm – 5.30pm: Permanent establishments – Stéphane Gelin
● Article 7 (old and new) of the Model Tax Convention ; the 2010 Report on the Attribution of Profits to PEs
● Model tax convention
● Recognition of dealings
● The arm’s length principle applied to transactions between associated enterprises and to the attribution of profits to permanent establishments: similarities and differences
Day 3
9am – 11am Specific transactions: Part 2
Intangible property – Stéphane Gelin and Colin Clavey
■ Life cycle of intangibles (development, exploitation, exit strategy)
■ Different types of intangibles
■ Two possible models to structure the development of intangibles: contract research and development versus cost contribution / cost sharing arrangements
■ Two possible models for exploiting intangibles: principal structure v. licensing out
■ Valuation of intangible assets
11.30am – 1.30pm: Specific transactions: Part 3
Business restructurings – Stéphane Gelin and Colin Clavey
■ The nature of business restructuring
■ OECD guidance on the transfer pricing aspects of business restructurings (Chapter IX of the TP Guidelines) including risk, compensation and characterisation.
2.45pm – 4pm:
Intra-group services – Jennifer Paul
■ Different types of intra-group services
■ Transfer pricing methods. CUPs v. Cost Plus; when Cost Plus is not enough
■ Direct/indirect charging; allocation keys
■ EUJTPF guidelines on reviewing low value-added services
■ Guarantees – when they would be given,
guarantee fees. The GE Canada case
■ Example of treasury services: cash pooling

Ken Almand: With over 15 years’ experience across a wide range of transfer pricing matters Ken specialises in assisting clients with assurance issues, tax authority disputes, business restructuring, and thin capitalisation. Ken joined Baker Tilly in 2011 as head of transfer pricing, previously with Mazars and Ernst & Young. Formerly he was an International Tax Specialist working on transfer pricing at HM Revenue and Customs’ International Division where he advised on transfer pricing policy and led on complex enquiries and litigation issues.

Dr. Graham Poole: Graham is an Associate Director in NERA's Global Transfer Pricing Practice and leads the firm's UK transfer pricing team. He has 16 years of transfer pricing, litigation support, and economic consulting experience. Prior to joining NERA, Graham served in a global role for an FTSE 100 FMCG company and previously was a member of transfer pricing practices at leading accountancy firms in London.
Jennifer Paul: Jennifer has spent the last ten years working in Big 4 accounting firms, where she was a Director of Transfer Pricing. A qualified Chartered Accountant and Chartered Tax Adviser, Jennifer has wide experience of business tax and is also an expert in international tax aspects of business operations. Jennifer spent three years working in Milan, advising inward investors, where she learnt business Italian and experienced the practical aspects of business expansion overseas.
Stéphane Gelin: Stéphane has now spent more than 20 years advising French and foreign multinationals in the area of international tax and transfer pricing. Before joining CMS Bureau Francis Lefebvre, he was a tax partner with HSD Ernst & Young where he headed the transfer pricing practice of the French firm and was a member of E&Y Global Advisory Committee for transfer pricing.
Colin Clavey: Colin is a Senior Advisor in the Tax Treaty, Transfer Pricing and Financial Transactions Division of the OECD’s Centre for Tax Policy and Administration. Previously, he was a Transfer Pricing Advisor in the Large Business Service of HMRC (the UK tax authority), providing support, training and guidance to tax auditors on all aspects of transfer pricing and permanent establishments. Colin also spent four years as a senior consultant with Ernst and Young’s London transfer pricing practice.