Transfer Pricing Operations TEI-LB&I Liaison Meeting May 14, 2012
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1 Transfer Pricing Operation TEI-LB&I Liaison Meeting May 14, 2012
description
Transfer Pricing Operations TEI-LB&I Liaison Meeting May 14, 2012. LB&I International Function Overview. Commissioner Large Business & International. EOI Program. Treaty Unit. JITSIC. Michael Danilack, Deputy Commissioner (International) Doug O’Donnell, Assistant Deputy Comm’r (Int’l). - PowerPoint PPT Presentation
Transcript of Transfer Pricing Operations TEI-LB&I Liaison Meeting May 14, 2012
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Transfer Pricing Operations TEI-LB&I Liaison Meeting
May 14, 2012
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Sam Maruca, Director, Transfer Pricing Operations
Sam Maruca, Director, Transfer Pricing Operations
Carol Poindexter, Acting Director, International Business Compliance
(IBC)
Carol Poindexter, Acting Director, International Business Compliance
(IBC)
CommissionerLarge Business &
International
Rosemary Sereti, Director, International Individual
Compliance (IIC)
Rosemary Sereti, Director, International Individual
Compliance (IIC)
Michael Danilack, Deputy Commissioner (International)
Doug O’Donnell, Assistant Deputy Comm’r (Int’l)
Treaty Unit
Foreign Posts
Service-wide Strategy
JITSIC
EOI Program
LB&I International FunctionOverview
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Deputy Commissioner International
Director, Transfer Pricing Operations EA Operations
Senior Tax Advisor
Special Project Deps.
Senior Econ Advisor
Director APMA
Deputies
EA Technical
IPN Manager
TTM West
TTM Central
TTM East
2 Mgrs. 2 Mgrs. 2 Mgrs.
12 Mgrs.
LB&I International Function
Transfer Pricing Operations LB&I International Function
Transfer Pricing Operations
Transfer Pricing PracticeTransfer Pricing Practice
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TPO – A Single Practice
• TPO will operate as a single, unified practice • Two program segments:
– Advance Pricing and Mutual Agreement (APMA)– Transfer Pricing Practice (TPP)
• APMA - external focus; TPP - internal focus– But nearly complete substantive overlap
• One knowledge base– Income shifting IPNs– Sharing information, experience and skills
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TPO – A Single Practice
• Why a single practice?– Necessity of global perspective in treaty cases– Ensure cases steered to proper forum– Demand for two-way, end-to-end visibility– Need to share experience/expertise to ensure optimal
case selection and development– Common understanding of MNE behaviors and
planning strategies - CONTEXT– Common skills, common training
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TPO – A Single Practice
• Steps to achieving an efficient, integrated practice that produces quality positions– Recruit the best– Ensure that managers are experts, equipped to
provide substantive review and mentoring– Provide training in case development and negotiation,
especially oral/written presentation– Communication and collaboration through IPNs and in
day-to-day work
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TPO – A Single Practice
• Steps to achieving an efficient, integrated practice that produces quality positions (cont’d)– Build knowledge base, including searchable skills
inventories and case databases (KTK basis)– Joint meetings and training sessions– Coordination with LB&I units, especially IBC, IIC and
Field Specialists– Coordination with TAIT
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APMA – Special Considerations
• APMA’s immediate focus is external (resolving issues with treaty partners) but must be informed by understanding of broader context– Inbound/outbound– Taxpayer’s overall tax position and planning
objectives– Collateral proceedings (such as domestic audits)– Sourcing issues and their significance– Where is matter best resolved?
• So APMA practitioner needs broad perspective
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APMA – Special Considerations
• Skill-building– Legacy APA personnel have strong case development
skills; legacy CA personnel have strong negotiation skills
– Individuals have specific industry/taxpayer experience– We need to leverage off one another’s strengths
• Heightened importance of presentation– Arbitration
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TPP – Special Considerations
• On-going activities– Pilot cases– Pre-2009 cost share buy-in triage project– Build-out
• Re-engineering risk assessment/audit process– Coordination with PAIR– Assessment of UTP filings – “Roadmap” – building on QEP– Dialogue with Appeals– Coordination with APMA
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TPO – The Way Forward
• Earlier and more proactive participation by APMA in field audits of treaty cases
• Concentration by TPP on tax haven activity and recalcitrant taxpayers
• Closer collaboration with IBC and field operation in general
• Creative solutions – “expanded” APAs, joint audits, multilateral collaboration among jurisdictions, increased dialogue among CAs
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TPO – The Way Forward
• Substantive areas of strategic importance - TPP– Continued attention to outbound IP migration – new
cost-sharing regulations– High-value services– Middle market MNEs– Financial sector– Inbound activity
• Commitment to enhancing transfer pricing administration globally– FTA Guidelines
