1. Business Restructuring Panel
Patrick Ellingsworth
Chair, Tax Committee of Business & Industry Advisory Committee (BIAC) to the OECD

2. OECD Business Restructuring Project --Background
History of OECD Project: Searching for means of solving tax revenue shift problems, through tax analytical support and change in rules/model treaty
OECD process: public forum in January 2005, followed by extended period of discussion of issues and dealing with the solution- expectations of Member States
Member State Actions: legislation and audits
OECD Project initially took on too much, mixed Working Parties, and, for a high emotion issue, worked too obscurely
Project revised in 2007 to break into technical Transfer Pricing and Permanent Establishment issues

3. OECD Business Restructuring Project—Current Update
Transfer Pricing (TP) Discussion Paper issued 19 September 2008
Good work product; much progress in grounding project in good analysis
Many comments received: summary
Consultation on TP Paper (9-10 June)
Summary of Consultation
PE issue

4. OECD Business Restructuring Project—Trends and Assessment
OECD Secretariat analysis is mostly objective, practical and insightful as to considerations and competing tax authority and commercial interests
But disturbing trend lines continue: skepticism about Arm’s Length principle, subsidiary alternatives, document everything and more…
Different taxpayer approaches: pin down the detailed rules or rely on general principles?
Plenty of questions and issues: will project be caught up in financial crisis work & rhetoric?
Announced timeline and way forward