There are numerous developments in the transfer pricing world to report. A French ruling puts in doubt the country’s new requirement that transfers of labour functions and risks to a related company outside France must be justified as being at arm’s length. In India, there have been further developments on the new safe harbour rules. In Ukraine, the list of countries designated as low tax jurisdictions for transfer pricing has been approved. The US has recently applied its valuation misstatement penalty in two transfer pricing cases. Guidance on practical issues concerning the new Russian transfer pricing regime continues to evolve. Italy’s new ‘Google tax’ concerns issues that are inseparable from the wider transfer pricing issues being reviewed as part of the BEPS project and would seem to be in potential breach of the fundamental freedoms in the EU Treaty.
