Panel Discussion on "Top 10 Issues on Global Transfer Pricing in COVID-19 Times"

Episode Duration:
100 minutes

Episode Background:
The often-cited adage of “change being the only constant” has gathered an altogether new dimension as economies and businesses brace for unprecedented changes in the face of the COVID-19 pandemic, a true black swan event, and what is potentially termed as the ‘new normal’. While these are times where Transfer Pricing (TP) models set by MNEs will be tested both in form and substance, the outspread and diversity of the coronavirus impact is broad enough to have ramifications on TP practices worldwide beginning from TP policies to benchmarking, documentation etc.

What shall the episode cover?
In this distinctive episode, a panel of acclaimed tax experts, viz, Ms. Anuprita Mehta (Vice President – Taxation, Piramal Enterprises Limited), Mr. K. Balasubramanian (Vice President & Global Head, Corporate Tax – Wipro Limited), Mr. Christopher A. Karachale (Tax Attorney-  Hanson Bridgett LLP), Mr. Sanjay Kapadia (Senior Advisor, India Tax Practice - KNAV) & Mr. Shishir Lagu (Partner, US Tax, KNAV) have identified and addressed key issues affecting corporates on transfer pricing matters as they navigate through the challenges brought about by COVID-19. The panel has been moderated by KNAV Partner Mr. Uday Ved and Taxsutra Group Editor Mr. Arun Giri.

In this episode, the esteemed panel has covered an array of aspects regarding impact of COVID-19 on global transfer pricing which includes the following:

1. How should a corporate go about its comparables selection, adjustments & TP documentation in COVID-19 times?
2. What will be the impact on routine entities (LRD/ LRM/ LRSP) – Any possibility of lower mark-up or change in TP methodology?
3. What will be the location / people disruption related transfer pricing issues?
4. Regarding compensation for royalty and management charges – Whether any waiver or moratorium can be provided?
5. What will be the impact of business restructuring such as rationalization, specialization or de-specialization of operations (including downsizing or closing)?
6. How will intra-group financing arrangements be affected, viz intercompany loans, guarantee, etc?
7. Should COVID-19 crisis management charges be cross charged with or without markup?
8. Regarding related party contracts- Should corporates revisit/ renegotiate their intercompany agreements?
9. Should Advance Pricing Agreement [APA] terms be renegotiated?
10. How should corporates prepare for future controversies?