Transfer pricing energy and resources in 2019

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Transfer pricing energy and resources in 2019

In conjunction with International Tax Review, Deloitte Touche Tohmatsu is pleased to present the 2019 Transfer Pricing Energy and Resources guide, a collection of industry thought papers produced by Deloitte member firm transfer pricing (TP) professionals in the energy and resources (E&R) industry.

The E&R industry is truly global, spanning different types of transactions ranging from commodity trades to finance, services, and royalty-based payments. One of the key challenges the industry faces is addressing the breadth of tax, TP and investment issues specific to it.

In this guide, we begin with a primer on the E&R industry, which includes an overview of the E&R supply chain, an introduction to TP fundamentals, and a discussion of TP issues specific to the E&R industry to broaden the general knowledge base of international tax professionals and others interested in this dynamic industry.

Then, we turn our attention to various TP issues and challenges related to the industry at a regional- and jurisdiction-specific level. We begin with an article that focuses on the TP issues in Southeast Asia, a key destination market for many commodities. We then address the recent emergence of TP rules in the Middle East region.

We also include focused articles that provide an overview of recent TP developments in selected countries that have a significant or expanding presence in today's E&R industry. These include a review of the application of the comparable uncontrolled price (CUP) method in Russia, cost-plus versus cost-applied pricing to the E&R sector in India, a Canadian perspective on pricing hydrocarbon commodities, and a review of Australia's guidance on centralised E&R operating models.

We conclude our guide with three articles that provide an overview of some increasingly popular TP approaches. These include an article on asset-backed trading models and a review of the application of the profit-split method in light of the OECD's June 2018 guidance. We conclude with some commentary on centralised commodity trading hubs in the post-BEPS environment.

Given the complexity and variety of tax issues within this industry, this guide should be the starting point rather than the finish line for all your E&R industry-related TP and tax inquiries.

We hope you find our publication interesting and, more importantly, of practical use, and we invite you to contact our leading team of professionals or your local Deloitte contact if you have any questions.

Deloitte global energy and resources transfer pricing team

Aengus Barry

barry.jpg

Partner

Deloitte UK

Tel: +44 20 7007 4331

aenbarry@deloitte.co.uk

Aengus Barry joined Deloitte UK's transfer pricing team 16 years ago and since that time has spent a significant portion of his career assisting clients in the energy and resources industry. He has particular experience in complex energy and resources pricing projects, from using risk pricing statistical techniques to support the marketing margins retained by mining groups to one of our most difficult diversionary LNG cargo pricing assignments. Aengus has experience delivering a broad range of TP services, from documentation and compliance reports to IP planning exercises and debt pricing projects. He has worked on a number of APAs and also has experience of wider international tax issues through participation in several tax structuring projects. Aengus holds both bachelors and masters degrees in economics. He is a CFA charter holder and was awarded the ATT qualification.


more across site & shared bottom lb ros

More from across our site

Winning the case against the 20% VAT imposition was always going to be an uphill challenge for the claimants, UK tax advisers argue
A ‘paradigm shift’ in Chile’s tax enforcement requires compliance architecture built on proactive governance, strategic documentation and active monitoring of judicial developments
Paul Monaghan, CEO of the Fair Tax Foundation, digs into where companies are going wrong with CbCR, the ‘Russia question’, and shares new data exclusively with ITR
The long-awaited overhaul of Brazil’s tax systems will cause uncertainty for businesses. Experts from Lavez Coutinho argue it is essential for company leaders to get ahead of the issues
‘KPMG Workbench’ has a network of 50 AI assistants and chatbots that will assist clients; in other news, Baker McKenzie hired a former US deputy attorney general and tax disputes expert
The UK tax agency reported that the total estimated tax gap for the 2023/24 tax year is £46.8 billion
The case shows that legal relationships between parties bear significance and should be given sufficient weight in TP analyses, one local adviser says
Burford Capital said it hopes that the US Congress will not ‘set back’ business growth and innovation by introducing a tax on litigation funding profits
The new framework simplifies the process of relocating eligible employees to Luxembourg and offers a ‘clear and streamlined benefit’, says Alexandra Clouté of Ashurst
The Portuguese firm’s managing partner tells ITR about his love of Sporting Lisbon, the stress of his '24-hour role', and why tax is never boring
Gift this article