Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
IN THE PHILIPPINES
by: Atty. Edwin R. Abella, CPA, LLM
Presentation Outline
the Philippines
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2.
3.
Revenue Issuances
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due to
Philippine TP Cases
Avon Products Manufacturing, Inc. v. CIR, 2005
Involves comparison of sale to local affiliate with
exportation to a foreign affiliate
BIR Position:
Taxpayer underdeclared export sales because
export price is lower than the price of the
local sale.
Ruling:
Lower export price is justified because of
difference in the market. Best price gets the
business.
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Philippine TP Cases
ING Barings Securities Philippines, Inc. v. CIR, 2005
Involves comparison of price of services to third
parties v. services rendered to an affiliate.
BIRs Position:
Additional commission income should be imputed
because price given to its foreign affiliate is not
at par with its other foreign clients.
Ruling:
Not comparable because the foreign affiliate
performs other duties for the Manila office in
terms of marketing, research and execution of
transactions.
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Revenue
Memorandum
Order
No.
63-99
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Advance
Pricing
arrangements
(APA)
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18
20
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Selection
and
ofPRINCIPLE
the TP
APPLICATION
OFApplication
ARMS LENGTH
Methods (TPM)
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25
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27
28
29
30
31
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maintaining
TP
TP
documentation
generally
demonstrates
compliance with the arms length principle
All TP transactions regardless of the amount
involved, must be properly documented
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of the
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Organizational Structure
Nature of the business/industry and
conditions
Controlled transactions
Assumptions, strategies, policies
Cost contribution arrangements (CCA)
Comparability, functional and risk analysis
Selection of transfer pricing method
Application of the transfer pricing method
Background documents
Index to Documents
36
market
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Thankyou!
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