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OECD engages dialogue on business restructuring: 2nd CTPA Roundtable focused on business restructuring


The OECD Centre for Tax Policy and Administration held its 2nd CTPA Roundtable in Paris on 26-27 January 2005, on the theme “Business Restructuring”. Restructuring operations affecting a company’s industrial, commercial and supply chain processes can be very diverse. Risk stripping arrangements are among the most common examples but there are also for instance operations designed to rationalise the number and operating mode of a multinational enterprise manufacturing sites, e.g. further to a merger or acquisition.

This type of industrial and commercial reorganisations has become increasingly common in the last decade due to the development of global business models. They can have complex and often significant consequences for international tax purposes, including the possible creation of permanent establishments; new transfer pricing issues and sometimes large variations in the level of profits reported in each country; issues around goodwill and possible transfer of intangible assets; threshold issues for recognition of the migration advocated by the taxpayer; closing expenditures; VAT and customs duties for new logistical flows that are increasingly often different from the legal and invoicing flows; etc. From a policy perspective, questions include whether tax may lead to inefficiency in business restructuring, and whether business restructuring can be motivated by tax minimisation objectives rather than by true business reasons.

The 2nd CTPA Roundtable was attended by senior officials from OECD member countries as well as from China, South Africa and Singapore and by a wide panel of private sector representatives. The discussion covered treaty, transfer pricing and indirect taxes issues involved in business reorganisations. It started with a presentation by a panel of business representatives of the taxpayer’s perspective on non tax reasons for business restructuring. The discussion was then organised in three substantive sessions covering industrial, commercial and logistics reorganisations. Government and private sector participants addressed a wide range of issues, including administrative approaches taken in examinations, treaty, transfer pricing and VAT issues. Click here for a brief summary of the Roundtable discussions.

For any further information please contact Caroline Silberztein  (Email: