Tax authorities are increasingly scrutinizing transfer pricing and other tax arrangements relating to the transfer of intellectual property within MNEs because of the difficulties in determining the value contribution of intangible assets and the high value (in terms of profits) frequently ascribed to these assets. The 2017 OECD Transfer Pricing Guidelines (OECD TPG) established the DEMPE idea as a tool for tax authorities to eventually recharacterize transactions. The decision of the Provincial Administrative Court of Poland in April discloses tax authorities’ result-driven interpretation of DEMPE analysis and recharacterizations of transactions involving intangibles.
