Transfer pricing Europe
– the EU Joint Transfer Pricing Forum
Since the founding of the European Communities, transfer pricing
has enjoyed special attention as an essential element for the
initiation and realization of the European single market. But recently,
transfer pricing Europe is recognized as being a major source of
disputes, due to its growing
number of tax problems and
regulation differences.
Since the founding of the
European Communities,
transfer pricing has enjoyed
special attention as an
essential element for the
initiation and realization of
the European single market.
But recently, transfer
pricing Europe is recognized
as being a major source of
disputes, due to its growing
number of tax problems and
regulation differences.
Obstacles and problems
related to transfer pricing
Europe identified are of many
different natures, but they all
are more and more stringent
and demand a solution.
Deepening its single market
and the increasing growth
and development of new
technologies, as well as
national and international
business structures have
aggravated these transfer
pricing Europe problems in recent years.
A common feature of many of issues regarting the transfer pricing
Europe topic is the demand for a closer cooperation between the tax
administrations and the taxpayers, which is believed to have the
potential to lead to a substantial progress.
Staring with July 2002, the European Commission has appointed 10
private sector tax experts and a Forum President to participate in
the Joint Transfer Pricing Forum of the European Union
(EUJTPF).
Together with Member States’ tax expers, this transfer pricing
Europe EUJTPForum has the task of finding ways to increase the
cooperation between the tax administration and the taxpayers,
starting with reducing the high compliance costs and the elimination
of double taxation, which frequently occur in the case of cross-
border intra-group transactions.
These problems occur due to differences of interests between both
companies and national tax authorities, as well as among the
European tax administrations in connection with transfer pricing
Europe regulations.
The overall objective of the Forum is more uniform application of the
relevant rules regarding transfer pricing Europe. Although all
Member States apply and recognize the recommendations of
Organisation for Economic Co-operation and Development (OECD),
the different interpretations which were granted to them often give
rise to cross-border disputes.
The first meeting of the Forum was scheduled for October 2002 and
back then, only 7 countries had trasfer pricing Europe regulations in
place. Now, as a result of the EUJTP Forum, transfer pricing
Europe legislation has extended to all European Union members.