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In the first case to reference the UN manual since the Indian government formally adopted it, taxpayers can be more confident about using a foreign entity to test whether a transaction is at arm’s-length, after the Ahmedabad Tribunal court overturned a transfer pricing adjustment made against General Motors on these grounds.

Lower Mosley Street

Joel Williamson, Charles Triplett and Jason Osborn of Mayer Brown On February 12 2013, the OECD published its report on Addressing Base Erosion and Profit Shifting (the BEPS report). The BEPS project is remarkable due to its backing by the political leaders of the world's largest economies. It was commissioned by the G20 in 2012 as these governments scramble to preserve and recover corporate tax revenue, which declined sharply during the down economy years, from 3.8% of OECD members' combined GDP in 2007, to 2.9% of GDP in 2010. Beginning with the bold statement that "[b]ase erosion constitutes a serious risk to tax revenues, tax sovereignty and tax fairness for OECD member countries and non-member countries alike," the BEPS report identifies a number of key pressure areas where multilateral action may be needed. These include:

Alberto Benshimol

16th floor, Keangnam Hanoi Landmark 72

1675 Broadway

Michael Bersten, Paul McCartin and Caleb Khoo PwC The tax audit and controversy landscape in Australia continues to shift and evolve against a backdrop of the federal government's commitment to addressing base erosion and profit shifting (BEPS) and to increase revenue collections. The focus on the Australian budgetary position has contributed to the Australian government introducing a number of legislative changes with the stated purpose of limiting perceived areas of potential revenue leakage. Recent changes include clarifications to Australia's general anti-avoidance and transfer pricing rules. In addition to legislative responses, the Australian government has provided additional budgetary funding to the Australian Taxation Office (ATO) to enable it to focus on areas considered to be high risk, such as cross-border financing or business restructures. In this environment, the ATO is adopting a far more evidentiary based, or litigation-ready approach to information gathering. This approach has been in response to a number of factors such as court losses which may, at least in part, be attributed to insufficient evidence collection and the recent limitations on the Commissioner's powers of discovery. This has meant that the ATO will increasingly seek to collect its evidence during the audit and objection stage rather than before litigation.

Mauricio Pereira Faro

26/F Office Tower A, Beijing Fortune Plaza

Ernst & Young Ltda