Transparency is fundamental to Ireland`s initial pricing programme. All bilateral agreements shall be negotiated on the basis of arm`s length remuneration for transactions covered by the agreement using one of the transfer pricing methods contained in the Transfer Pricing Guidelines. Are there any considerations or issues specific to your jurisdiction that related parties should consider when choosing transfer pricing methods? The Revenue Commissioners adhere to the detailed guidelines for the conclusion of APAs set out in the Annex to Chapter IV: Advance Pricing Arrangements of the OECD Transfer Pricing Guidelines. All bilateral APAs will be negotiated on the basis of arm`s length remuneration for transactions covered by the APP and, in any event, the transfer pricing method used will be consistent with one of the methods set out in Chapter II of the OECD Transfer Pricing Guidelines. Ireland`s advance pricing agreement programme complies with the detailed guidelines for the conclusion of such agreements set out in the Annex to Chapter IV: Advance Pricing Arrangements. When negotiating an initial bilateral price agreement with an EU Member State, Irish Revenue will also follow best practices for the implementation of these procedures, as set out in the guidelines for ex ante pricing agreements within the European Union published by the EU Joint Transfer Pricing Forum. Ireland does not charge a fee for requests for prior price agreements. Ireland introduced formal transfer pricing rules in 2010, which broadly apply an arm`s length standard to commercial transactions between affiliates. The arm`s length standard must be interpreted in accordance with the OECD Transfer Pricing Guidelines. Ireland has not yet adopted the amendments to the OECD Transfer Pricing Guidelines proposed in the OECD BEPS Measures 8 to 10 (Transfer Pricing) report, but it is expected that they will soon be transposed into Irish law. Overall, we see this as a very positive development for Irish companies facing an increasingly challenging international tax environment, where transfer pricing is a « hot topic » that is strongly highlighted by tax authorities around the world. The bilateral ABS program is intended to apply to one or more transactions when related transfer pricing issues are complex (for example.
B where there are serious doubts as to the appropriate application of the arm`s length principle or where there is a high probability of double taxation). Where transfer pricing issues concern more than two tax jurisdictions, one of which is a Prior Pricing Agreement (APA) is an agreement between tax authorities and taxpayers on the future application of the transfer pricing policy. For many taxpayers, an APA can be an effective measure to mitigate transfer pricing risks by ensuring that the level of future profitability is properly accepted by tax authorities. There are no separate legal regulations for transfer pricing penalties. However, the Irish Tax Office may apply standard corporate tax penalties applicable to the Irish self-assessment system to transfer pricing assessments. The objective of an APA is to prevent disputes between a tax administration and the taxable person concerning the transactions concerned and to avoid the risk of double taxation. It provides certainty about the transfer pricing methods chosen and can mitigate audit risk related to more important transfer pricing issues. Under the APA, tax administrations and taxpayers work together in a non-confrontational environment. Describe the general policy of the state or transfer pricing regulations in your jurisdiction. To what extent is the arm`s length principle respected? • how this method led to arm`s length pricing or, where this was not the case, what accounting adjustment was needed and how it was calculated. This usually includes analysis of market data or other information about comparable third-party providers; The verifications apply to specific settlement periods and concern specific aspects of the taxpayer`s transfer pricing, including the group structure, the details of transactions by type (including the related companies concerned) and the transfer pricing method used for each transaction or group of transactions. Irish Revenue may conduct a formal investigation (with the risk of imposing penalties) if it is not satisfied with the taxpayer`s response to its request.
A transfer pricing audit is carried out in the same way as a regular tax audit, as described above. .
