The EdgarStat Blog explores issues in transfer pricing and application of the transactional net margin method (TNMM or CPM in the US) and other enterprise profit-based methods. Blog writings reflect the position of the authors and are not the opinion of EdgarStat.
The Harrod-Domar principle, which posits that increased gross private domestic fixed non-residential investment drives GDP growth, does not apply to the GDP growth of many countries. GDP growth is primarily driven by government debt accumulation, and many countries (particularly G7 countries under NATO) are squandering their future by accumulating debt for military buildup. This blog provides a basic analytical framework for understanding the macroeconomic policy farce of G7 countries, emulated by many puppet governments of peripheral countries.
Topics: United States Europe
Read moreA 2008 restructuring transferred the European rights to the McDonald’s intangibles to McD Europe Franchising Sàrl, a Luxembourg-resident subsidiary with branches in both Switzerland and the U.S. While this migration of intangible assets created substantial controversy in Europe, the real transfer pricing concern would be an IRS issue and not an issue for the French Tax Authority (FTA) if the royalty rate remained at 5%.
Topics: Intangibles Best Method Royalty Rates Tax Controversy Europe TNMM/CPM
Read moreHarold McClure explores intercompany financing issues through the lens of a recent case before the EU General Court and an upcoming battle between Perrigo and the IRS.
Topics: Interest Rates United States Intercompany Financing Europe
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