{"id":8370,"date":"2020-12-05T11:52:48","date_gmt":"2020-12-05T10:52:48","guid":{"rendered":"http:\/\/www.dagtva.com\/?page_id=8370"},"modified":"2024-08-13T08:56:04","modified_gmt":"2024-08-13T07:56:04","slug":"rbrpc-en","status":"publish","type":"page","link":"https:\/\/www.dagtva.com\/?page_id=8370","title":{"rendered":"MNE benefit RBNac"},"content":{"rendered":"

Proposal for a Global Taxation System<\/a><\/p>\n

DAGTVA\u00ae – Distribution of MNE profits<\/strong><\/span><\/p>\n\n\n\n\n
No.<\/strong><\/span><\/td>\n Problems exposed, requests, constraints and subjects<\/strong><\/span><\/td>\n Origin<\/strong><\/span><\/td>\n Pg<\/strong><\/span><\/td>\n Li<\/strong><\/span><\/td>\n Doc<\/strong><\/span><\/td>\n<\/tr>\n
28<\/td>\n R<\/strong>espect of arm\u2019s length p<\/strong>rinc<\/strong>iple \u201cUnified approach\u201d.<\/span><\/span><\/td>\n Pillar 1<\/td>\n 5<\/td>\n 45<\/td>\n RBNac<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Quote<\/strong><\/a> :\u00a0<\/strong>The three alternatives set out in the Programme of Work under Pillar One have a number of significant commonalities:<\/em><\/span><\/p>\n
\n
(1)<\/span><\/strong> they all go beyond the arm\u2019s length principle<\/em><\/span> (RBRpc – RBNac) and depart from the separate entity principle;<\/span><\/em><\/li>\n<\/ul>\n\u2022 New Profit Allocation Rule going beyond the Arm\u2019s Length Principle<\/span><\/strong><\/span>. It creates a new profit allocation rule (RBSju<\/a>) applicable to taxpayers within the scope<\/span> (CACag<\/a>), and irrespective of whether they have an in-country marketing or distribution presence (permanent establishment or separate subsidiary) or sell via unrelated distributors. At the same time<\/span>, the approach largely retains the current transfer pricing rules based on the arm\u2019s length principle<\/span> (RBDpx<\/a> \u2013 RBNac \u2013 RBRpc<\/a>) but complements them with formula based solutions in areas where tensions in the current system are the highest.<\/span><\/em><\/p>\n
The proposed \u201cUnified Approach\u201d would retain the current rules based on the arm\u2019s length principle<\/span><\/em> (RBRpc<\/a> \u2013 RBNac) in cases where they are widely regarded as working as intended, <\/span><\/em><\/p>\n
In the French version<\/strong><\/span><\/span> :<\/p>\n
\n
(1)<\/em><\/span> elles s\u2019\u00e9cartent toutes du principe de pleine concurrence<\/strong><\/span> (RBRpc – RBNac)<\/em> et d\u00e9rogent au principe de l\u2019entit\u00e9 distincte<\/strong><\/span> ;<\/li>\n<\/ul>\n
That can be translate in: \u00ab\u00a0\u2022 <\/span>they splay from the<\/span> arm’s length principle and <\/span>deviate<\/span><\/span> from the separate entity principle<\/span>;\u00a0\u00bb
\n<\/span><\/em><\/p>\n
With this interrogation, where is the good version, in English or in French?<\/p>\n
About the quotes<\/strong><\/span><\/span>: Between the first two assertions of the Pillar 1 text, above, which deviate from and go beyond the arm’s length principle<\/span> and the \u201cAt the same time<\/em><\/span>\u201d which contradicts them a few lines below by asserting that: \u00ab\u00a0The proposed \u201cUnified Approach\u201d would retain the current rules based on the arm\u2019s length principle<\/em><\/span>\u00a0\u00bb . Indeed, one cannot be in a principle<\/strong><\/span> of arm’s length principle and at the same time deviate from it and be beyond this principle<\/span><\/strong>. The last precision translated of the French phrase: \u00ab\u00a0mostly<\/em><\/span>\u00a0\u00bb ,which not exist in the English version, leaves room for doubt and one could do everything and its opposite! It would be necessary to know which version will be retained!<\/span> Even if it’s probably a translation problem of the document, we will have to choose<\/span>!<\/p>\n
It seems impossible that OECD propose a solution about a global taxation system which deviate from the arm’s length principle and the separate entity principle. This will not promote clear negotiations about an international tax system with 137 States with different interests.<\/span>
\n<\/em><\/span><\/span><\/p>\n
As specified in the previous section RBRpc<\/span><\/em><\/a> , you will see in the study of this proposal for a global taxation system, with<\/span> the DAGTVA calculation of transfer prices<\/span><\/a>, <\/span>the <\/span>DAGTVA<\/span><\/strong><\/span> tax system <\/span>never deviates from compliance with the arm’s length principle<\/span><\/strong><\/span>. Never it goes \u00ab\u00a0<\/span><\/span>beyond\u00a0\u00bb<\/span>. Just it<\/span> automatically calculating a theoretical transfer price to <\/span>strengthen it<\/span><\/strong>, in order to avoid any fiscal manipulation aimed at derogating from this principle of healthy competition.<\/span><\/span><\/p>\n
The DAGTVA<\/span> system also participates through its structure and its functioning in the distribution a better distribution of profits within MNEs<\/span> as is explained in the different situations of the DAGTVA calculation of transfer prices<\/a>.<\/p>\n
Back to the truth table<\/a><\/p>\n
**********<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
Proposal for a Global Taxation System – DAGTVA truth table – DAGTVA\u00ae – Distribution of MNE profits No. Problems exposed, requests, constraints and subjects Origin Pg Li Doc 28 Respect of arm\u2019s length principle \u201cUnified approach\u201d. Pillar 1 5 45 … Continuer la lecture →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":7897,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-8370","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages\/8370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8370"}],"version-history":[{"count":10,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages\/8370\/revisions"}],"predecessor-version":[{"id":11539,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages\/8370\/revisions\/11539"}],"up":[{"embeddable":true,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages\/7897"}],"wp:attachment":[{"href":"https:\/\/www.dagtva.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}