Praxis in Transfer Pricing ¿Interest or dividends?

In the recent updates to the OECD Transfer Pricing Guidance on Financial Transactions the importance of distinguishing between the payment of interest and the payment of dividends in loan transactions between related parties is reiterated. The distinction is critical with regards to the erosion of t...

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Main Author:	Landa-Fournais, Luis Enrique
Format:	Online
Language:	spa
Published:	ACACIA A.C. 2022
Online Access:	https://cienciasadmvastyp.uat.edu.mx/index.php/ACACIA/article/view/310
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spelling	oai:ojs.pkp.sfu.ca:article-3102022-11-03T17:21:20Z Praxis in Transfer Pricing ¿Interest or dividends? Praxis en materia de precios de transferencia ¿Intereses o dividendos? Landa-Fournais, Luis Enrique México precios de transferencia impuestos empresas multinacionales dividendos Mexico transfer prices multinationals taxes dividends In the recent updates to the OECD Transfer Pricing Guidance on Financial Transactions the importance of distinguishing between the payment of interest and the payment of dividends in loan transactions between related parties is reiterated. The distinction is critical with regards to the erosion of the tax base since interest is deductible for purposes of income tax payments while dividends are not. To date, there is no methodology with quantitative indicators that can unambiguously determine the difference between the two. Given this lack of clarity, this article presents the case of a tax audit performed on a Mexican subsidiary that carries out loan operations with its parent company abroad. The case presents a situation that tax authorities frequently face in real transfer pricing audits, in which it can be unambiguously ruled that interest payments can be declared as dividend payments, thus protecting the integrity of the national tax base. En las recientes actualizaciones a las directrices de la OCDE en materia de precios de transferencia en operaciones financieras, se reitera la importancia de distinguir entre el pago de intereses y el pago de dividendos en operaciones de préstamo entre partes relacionadas. La distinción es crítica en lo que se refiere a la erosión de la base gravable puesto que los intereses son deducibles para efectos del pago del impuesto sobre la renta mientras que los dividendos no lo son. A la fecha, no existe una metodología con indicadores cuantitativos que pueda determinar sin ambigüedad la diferencia entre ambos. Ante esta falta de claridad, este artículo presenta el caso de una auditoría fiscal que se practica a una subsidiaria mexicana que realiza operaciones de préstamo con su casa matriz en el exterior. El caso presenta una situación a la que se enfrentan las autoridades fiscales con frecuencia en auditorías reales en materia de precios de transferencia, en la que se puede dictaminar sin ambigüedad, que el pago de intereses puede ser declarado pago de dividendos protegiendo de esta forma la integridad de la base gravable nacional. ACACIA A.C. 2022-11-03 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Artículo revisado por pares application/pdf text/html https://cienciasadmvastyp.uat.edu.mx/index.php/ACACIA/article/view/310 10.46443/catyp.v18i2.310 Ciencias Administrativas. Teoría y Praxis; Vol. 18 No. 2 (2022): JULIO - DICIEMBRE; 29 - 43 Ciencias Administrativas. Teoría y Praxis; Vol. 18 Núm. 2 (2022): JULIO - DICIEMBRE; 29 - 43 2683-1465 2683-1457 spa https://cienciasadmvastyp.uat.edu.mx/index.php/ACACIA/article/view/310/355 https://cienciasadmvastyp.uat.edu.mx/index.php/ACACIA/article/view/310/356 http://creativecommons.org/licenses/by-nc-nd/4.0
institution	CIENCIAS ADMINISTRATIVAS
collection	OJS
language	spa
format	Online
author	Landa-Fournais, Luis Enrique
spellingShingle	Landa-Fournais, Luis Enrique Praxis in Transfer Pricing ¿Interest or dividends?
author_facet	Landa-Fournais, Luis Enrique
author_sort	Landa-Fournais, Luis Enrique
title	Praxis in Transfer Pricing ¿Interest or dividends?
title_short	Praxis in Transfer Pricing ¿Interest or dividends?
title_full	Praxis in Transfer Pricing ¿Interest or dividends?
title_fullStr	Praxis in Transfer Pricing ¿Interest or dividends?
title_full_unstemmed	Praxis in Transfer Pricing ¿Interest or dividends?
title_sort	praxis in transfer pricing ¿interest or dividends?
description	In the recent updates to the OECD Transfer Pricing Guidance on Financial Transactions the importance of distinguishing between the payment of interest and the payment of dividends in loan transactions between related parties is reiterated. The distinction is critical with regards to the erosion of the tax base since interest is deductible for purposes of income tax payments while dividends are not. To date, there is no methodology with quantitative indicators that can unambiguously determine the difference between the two. Given this lack of clarity, this article presents the case of a tax audit performed on a Mexican subsidiary that carries out loan operations with its parent company abroad. The case presents a situation that tax authorities frequently face in real transfer pricing audits, in which it can be unambiguously ruled that interest payments can be declared as dividend payments, thus protecting the integrity of the national tax base.
publisher	ACACIA A.C.
publishDate	2022
url	https://cienciasadmvastyp.uat.edu.mx/index.php/ACACIA/article/view/310
work_keys_str_mv	AT landafournaisluisenrique praxisintransferpricinginterestordividends AT landafournaisluisenrique praxisenmateriadepreciosdetransferenciainteresesodividendos
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Praxis in Transfer Pricing ¿Interest or dividends?

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