Comment on OECD Draft on the Transfer Pricing Aspects of Business Res

ABCD KPMG LLP Telephone 202 533 3800 2001 M Street, NW Washington, DC 20036-3310 To Jeffrey Owens Date February 18, 2009 Director of the OECD Centre for Tax Policy and Administration From KPMG’s Global Transfer Pricing Services, Ref OECD Discussion Draft on the Transfer Pricing contact Clark Chandler Aspects of Business Restructurings – 19 September 2008 to 19 February 2009 OECD Invitation to Comment on the OECD’s Discussion Draft on the Transfer Pricing Aspects of Business Restructuring Overview Professionals in the Global Transfer Pricing Services practice of KPMG LLP and certain member firms of KPMG International (hereinafter referred to as KPMG) welcome the opportunity to comment on “Transfer Pricing Aspects of Business Restructurings: Discussion Draft for Public Comment 19 September 2008 to 19 February 2009 (“Discussion Draft”). The increased instances of tax authorities in recent years asserting that large “exit charges” are due when multinational enterprises (MNEs) move functions and risks from one legal entity to another have presented taxpayers with significant challenges. Often, the theories used to support the asserted exit charges go beyond traditional transfer pricing requirements in that they include charges for goodwill and going concern values in addition to charges related to transfers of specific assets. While this is apparent in the new German legislation and in the Temporary U.S. Cost Sharing Regulations, KPMG has ...