NERA Vice President Sébastien Gonnet and Senior Consultant Amanda Pletz participated in a two-day workshop, held in Kuala Lumpur, Malaysia on 6-7 December 2012, that focused on transfer pricing challenges facing the oil and gas sector. Via webcast, Mr. Gonnet and Ms. Pletz delivered a presentation entitled "Economic Analysis for Transfer Pricing: Oil and Gas Industry." Through the use of case studies, their presentation illustrated how the application of proper economic analysis can help taxpayers design and defend economically robust and tax-efficient transfer pricing systems, as well as mitigate risks and generate opportunities. Specifically, Mr. Gonnet and Ms. Pletz demonstrated how to appropriately and objectively demonstrate the arm's length nature of cost charges from a parent company to a subsidiary; determine an arm's length interest rate for an inter-company loan; and determine the arm's length value of an asset under uncertainty.
Download NERA's presentation here.
A recording of the webcast is available here.