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Guaranteed Unclarity? – A Critical Analysis of Paragraph 10.161 of the OECD Transfer Pricing Guidelines

Authors: S.Sundar Manivannan; D.van Straten;

Guaranteed Unclarity? – A Critical Analysis of Paragraph 10.161 of the OECD Transfer Pricing Guidelines

Abstract

Paragraph 10.161 of the OECD Transfer Pricing Guidelines takes a specific approach to the accurate delineation of financial guarantees by recharacterizing guaranteed debt as a loan to the guarantor followed by an equity contribution to the legal borrower in certain circumstances. This article provides a critical analysis of this paragraph by exploring its legal background and also considering potential ramifications of the approach included in the paragraph from an international tax perspective. This article also presents a way forward on how taxpayers and tax authorities may review debt capacity of a borrower of guaranteed debt to establish the arm’s length nature of the financing arrangement.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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