Application of the Arm's Length Principle to Physical Cash Pooling Arrangements in Light of the OECD Discussion Draft on Financial Transactions

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Etat: Public
Version: Final published version
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ID Serval
serval:BIB_E753663437B4
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
Application of the Arm's Length Principle to Physical Cash Pooling Arrangements in Light of the OECD Discussion Draft on Financial Transactions
Périodique
Intertax
Auteur(s)
Haller A., Chand V.
ISSN
0165-2826
Statut éditorial
Publié
Date de publication
10/03/2019
Peer-reviewed
Oui
Volume
47
Numéro
4
Pages
349-364
Langue
anglais
Résumé
Although cash pooling arrangements are one of the most important tools to facilitate efficient liquidity management within multinational enterprises (MNEs or group companies), the application of the arm’s length principle to these arrangements has not been sufficiently explored as yet.Against this background, this article critically discusses the transfer pricing aspects of physical cash pooling arrangements, especially in the light of the OECD’s recent Discussion Draft on Financial Transactions. Specifically, the article discusses the application of the arm’s length principle to cash pooling borrowings and deposits, guarantees issued in the context of the pooling arrangement, remuneration of the cash pool leader (CPL) as well as allocation of the cash pool benefit, in particular, the netting benefit and the volume discount. The authors also provide comments on the impact of the negative interest rate environment on cash pooling arrangements.
Création de la notice
03/12/2018 14:59
Dernière modification de la notice
04/09/2019 16:17
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