The tax treatment of intangibles in the context of transfer pricing

This paper highlights the increasing importance of intangibles in the international dealings of multinational enterprises. Focussing on fiscal regulations in the United States and in OECD member countries, particulary Australia, it critically reviews the arm's length principle and related issues in their application to intangible property. It examines the complexities associated with the various methodologies that have been developed for determining arm's length consideration for transfers of intangibles, and puts forward some suggestions for developing an appropriate typology.