Oddleif Torvik - Transfer pricing and intangibles : US and OECD arms lenght distribution of operation profits from IP value chains

The research project that resulted in this book commenced in September 2011, when the author began his studies for the PhD programme at the Faculty of Law of the University of Bergen (UiB). The project was made possible by financing provided through a PhD research scholar position at the Department of Accounting, Auditing and Law (IRRR) at the Norwegian School of Economics (NHH). The project was initially intended to be finalized in September 2015, when my position at NHH ended. As life would have it, however, this was around the time that the US tax authorities issued relevant new regulations and just before the OECD finalized its BEPS deliverables on transfer pricing of intangibles and related topics in October 2015. The author found withholding the thesis until he could fully incorporate these developments to be the only rational solution. The thesis was submitted for evaluation at the Faculty of Law at UiB on 3 May 2016 and was defended on 9 December 2016. This book is an updated, and somewhat edited, version of that thesis. The text takes into account material published before 31 March 2018 (the date on which the text was submitted for publication).

The authors research has benefited from the input of many. When he began working as a tax lawyer in Oslo after his studies in 2006, he found it inspiring to observe how those he worked under mastered the tax law discipline, including, in particular, tax lawyer and Professor Arvid Aage Skaar and tax lawyer Terje Hoffmann, both with Wiersholm then, and tax lawyers Christian Bruusgaard, Sverre Koch and Henning Naas, all with Thommessen then. In this sense, they have contributed to the authors research, as there perhaps would be none without their inspiration. The author thanks the resources at IRRR, where he had his daily workplace throughout the project. He also thanks Professor Katarina Kaarbe and Professor Guttorm Schjelderup at the Norwegian Centre for Taxation (NoCeT), for believing in the project and offering strong initial support; Professor Trond Bjrnenak, Professor Kjell Henry Knivsfl and Professor Frystein Gjesdal for management accounting, valuation and transfer pricing discussions, respectively; Assistant Professor Dirk Schindler for insights on the economics of profit shifting; and PhD candidate Kjell Ove Rsok for financial accounting insights.

The author also benefited from discussions with tax economists connected to, and from several interesting seminars arranged by, NoCeT. He thanks the European Association of Tax Law Professors (EATLP) and the International Fiscal Association (IFA) for allowing him to participate in the 2013 EATLP Poster Program for Doctoral Students in Lisbon and the 2014 IFA Mumbai Congress Poster programme, respectively, and would also like to thank everyone who engaged in discussions with him there. The author made several trips to the OECD in Paris throughout the project, participating in discussion draft consultations. He thanks those who shared their knowledge with him there, in particular Arthur Kristoffersen, Trude Snvisen and Stig Sollund, with the Norwegian Ministry of Finance, and Matthew Wall, with MDW Consulting in Canada. The author also participated in several PhD seminars. At a 2012 seminar at BI Norwegian Business School in Oslo, Professor Ole Gjems-Onstad offered helpful comments at an early stage. At a 2013 seminar arranged by the Nordic Tax Research Council, the author learned from a lecture held by tax lawyer PhD Andreas Bullen. At a 2013 David Doublet seminar in Solstrand, Professor Ragna Aarli at UiB provided the author with helpful guidance. At a 2014 seminar at the Uppsala Center for Tax Law, the author benefitted tremendously from the vast international tax law insights of Professor Hugh J. Ault from Boston College Law School and from discussions with Professor Bertil Wiman and Associate Professor Jrme Monsenego, both with Uppsala University. The author participated in several seminars arranged by the International Bureau of Fiscal Documentation (IBFD) in Amsterdam. He thanks those who engaged in discussions with him there, in particular Antonio Russo, with Baker & McKenzie, and Patrick Ellingsworth, trustee of IBFD. The author thanks NHH, NoCeT and the Meltzer Research Fund for financial contributions for making these research travels possible.

Others that kindly offered him comments, practical help or other support during the project include Professor Richard T. Ainsworth with the Boston University School of Law; Lee Sheppard with Tax Analysts, whom he met at a seminar at NHH in the fall of 2012 and provided interesting comments on US transfer pricing law; tax lawyer Michael Lebovitz, with White & Case, for helpful comments on the US cost-sharing regulations at a 2012 seminar he attended in Amsterdam; tax lawyer Leif Drillestad, then with PwC, for interesting practical insights on transfer pricing; tax lawyer PhD Hugo P. Matre, with Schjdt, for initial talks in 2011; tax lawyer Christian Svensen, with Simonsen Vogt Wiig, for transfer pricing discussions; tax lawyer Kristine Ilstad, with DnB; tax lawyer Bjrn Christian Lilletvedt Tovsen, with Thommessen; Associate Professor Emeritus Arthur J. Brudvik, at NHH; and Susanne Tollefsen Log, with Skatt Vest. The author is grateful for the help he received from University Librarian Jrn Wangensten Ruud at UiB and University Librarian Fredrik Andersen Kavli at NHH. He also thanks the IBFD library staff for their help. He also thanks Administration Manager at IRRR, Maren Dale Raknes, who has always been helpful, and Senior Consultant Mari Myren, then at UiB, for her kind assistance. He also thanks his fellow tax law PhD candidates for friendly discussions throughout the project. These are Tormod Torvanger, Henrik Skaar, Ingebjrg Vamrk, PhD Eivind Furuseth, Sarah Lindeberg and Blazej Kuzniacki. He also thanks Katriina Pankakoski, now with the Finnish Tax Administration, as well as his PhD candidate friends at NHH, in particular ivind Schyen and Martin Evanger. He thanks Julie Wille for proofreading the manuscript with impressive precision and haste.