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What are you working on?
Quite a lot of IP planning projects, a few
more general BEPS readiness projects,
and two pan-European documentation/
defence engagements.
Multinationals are getting to grips
with country by country reporting.
In your experience, is there a key area
they miss?
Yes, too many corporates are focusing
purely on the administrative aspects of
populating table 1 and table 2 with the
correct data and have not adequately
considered their strategy for mitigating
tax authority questions, i.e. their table 3
disclosures.
What are the key elements of a robust
transfer pricing framework?
We use the term ‘TP sustainability’ at
Questro. For me, it comes down to a TP
model that follows the substance of the
underlying business arrangements; a
good day to day TP management policy
that everyone understands and actions;
and an overall control framework to
catch problems early.
Is there a recent development in TP by
a particular country which has caused
clients potential difficulties?
The April draft of the US treasury
section 385 regulations caused some of
my clients a few sleepless nights. This
has been somewhat mitigated in the
final regulations published in October,
which are far less controversial. From
a TP perspective, clients were given
a sharp reminder in the April draft
of the importance of preparing intra-
group legal agreements and supporting
documentation in a timely manner in
order to secure the tax deduction of an
arrangement.
Do you expect to see TP disputes
increase or decrease in the coming
years?
Unfortunately, the stage is set for a
significant increase in disputes going
forward. The BEPS reports themselves
introduce a lot of subjective language
that can be interpreted in many ways,
tax authorities are under pressure
to raise revenue at the same time as
reducing headline tax rates, and the
public mood towards even legitimate
‘tax planning’ has hardened significantly.
If you could make one change to tax
law or practice, in any country, what
would it be?
From a purely business perspective,
I would be very happy if Switzerland
introduced mandatory annual TP
documentation requirements, but I’m
not sure my clients would share my
enthusiasm for such a change! Seriously
though, I’d like to see more consistency
on local implementation of BEPS Action
13, to enable corporates to reduce global
compliance spend.
Aside from your immediate
colleagues, who in tax do you most
admire?
I was lucky enough to start my career
working for Chris Rolfe, who was then
chairman of the global transfer pricing
group at Coopers & Lybrand, and a
leading light in the field. He was a great
teacher (many years retired now), and
I will always be thankful to him for the
start he gave me.
What service areas within or
connected to transfer pricing do you
expect to see most growth in this next
year?
Without any doubt, IT solutions are
on top of many corporate wish lists
for 2017. Whether to assist CBCR or
provide more holistic solutions for data
management and compliance work, I
believe we are currently at the start of an
IT revolution in TP and tax.
Finally, you might not know this about
me but…
I’m happiest when skiing from Piz
Sezner to Vella (a gloriously long
panoramic run in the Obersaxen
Mundaun) with my two young sons.
Despite the poor snow this year, I’m
hopeful for a great February. ■
Stephen Alleway
Questro International
Stephen Alleway is a transfer pricing adviser based in Switzerland who has more than 18
years of tax experience in the field of transfer pricing. He has acquired broad experience
in leading large global projects for Swiss and foreign headquartered multinationals and
has worked across a range of industries and jurisdictions. Email: s.alleway@questro-
international.com; tel: +41 43 508 39 16.
One minute with... What’s ahead
January
Consultation: Finance Bill 2017 draft
clauses consultation closes.
Cases: Court of Appeal scheduled to hear
HMRC’s appeal in HMRC v Cambridge
University (VAT: partial exemption).
Compliance:Electronic filing date for
2015/16 personal, partnership and trust
SA tax returns; balance of 2015/16 SA
liabilities due; payment of first instalment
of 2016/17 SA liabilities, including class 2
NICs; 2014/15 SA tax returns to be
amended; Companies House to receive
accounts of private companies with 30
April 2016 year ends and public limited
companies with 31 July 2016 year ends;
HMRC to receive corporation tax SA
returns for companies with accounting
periods ended 31 January 2016.
February
Consultations: Comments close on:
options for streamlining clearances for
companies using the tax-advantaged
venture capital schemes (see www.bit.
ly/2gbkIw4); draft provisions of Finance
Bill 2017 (see www.bit.ly/2ha3RM2);
pension tax for overseas pensions (see
www.bit.ly/2gYsLvj). Compliance: £100
penalty and extended enquiry window
if 2016 self-assessment tax returns not
filed on or by 31 Jan 2017; payment of
corporation tax liabilities for accounting
periods ended 30 April 2016 for small/
medium-sized companies not liable
to pay by instalments. FinanceBill
Sub-Committee(FBSC): Oral evidence
session on draft FB provisions on making
tax digital.
Compliance: P46(Car) for quarter
ended 5 January 2017.
Consultations: Comments close on:
HM Treasury’s revised proposals for
changes to the gift aid donor benefit
rules (see www.bit.ly/2fQTgo5); draft
regulations which cover the calculation,
reporting, payment and recovery of
the apprenticeship levy (see www.bit.
ly/2gHztsH); OECD draft examples
on the interaction between the treaty
provisions of the report on BEPS action 6
and the treaty entitlement of funds which
are not collective investment vehicles (see
www.bit.ly/2jAYGpp).
Cases: CourtofAppealscheduledto
hearHMRC’sappealinColaingroveLtdv
HMRC(No5)(VAT:saleofverandasfor
caravans).Compliance: DuedateforVAT
returnsandpaymentfor31Dec2016
quarter(electronicpayment).FBSC: Oral
evidencesessiononmakingtaxdigital.
Coming soon in Tax Journal:
z DOTAS: where are we now?
z The Supreme Court ruling on article 50.
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For a ‘what’s ahead’ which looks further ahead,
see taxjournal.com (under the ‘trackers’ tab).
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