GFIA Comments on OECD Transfer Pricing DiscussionsDate de parution : 02/06/2015 Personne(s)-ressource(s) : Janice Hilchie
GFIA is pleased to provide comments on the OECD discussion draft on BEPS Actions 8, 9 and 10: Discussion draft on revisions to Chapter I of the Transfer Pricing Guidelines (including risk recharacterisation, and special measures) (the "discussion draft").
In general, the GFIA supports the objectives of the OECD BEPS Action Plan to address weaknesses in the international tax environment. Accordingly, the GFIA supports the broad objectives of the discussion draft to ensure that the genuine substance of transactions is documented and reflected in a group's transfer pricing policy, rather than the legal form. However, it is critical that any measures adopted by the OECD are workable, well targeted, and do not result in unintended consequences that negatively impact the efficiency of commercial insurance operations and the availability and cost of insurance coverage for consumers.
In particular, given the highly regulated nature of the insurance industry, particularly with respect to capital requirements, any changes affecting capital would have a negative impact on the availability and cost of insurance, given the importance to insurers of being able to diversify portfolios through reinsurance.