The following were originally printed in BNA Tax Management's Transfer Pricing Report, a biweekly publication.

Transfer Pricing Highlights

Volume 17 Number 6
Wednesday, July 17, 2008

Glaxo Brings Tax Court Ruling to Canada's Federal Court of Appeal

GlaxoSmithKline notifies Canada's Federal Court of Appeal that it will contest a ruling that the company's Canadian affiliate overpaid its Swiss affiliate for the active ingredient of ulcer medication Zantac. Page 234

Chaback Says IRS Auditing Roughly 65 Cost Sharing Cases

About 65 cost sharing cases are under examination in the United States, most of them in the high-technology area, an Internal Revenue Service official says in discussing cases under the Service's tiered system. Page 231

U.S.-Canada Technical Explanation Seen to Lack Details on Arbitration

The technical explanation to the U.S.-Canada protocol leaves unanswered several questions about how arbitration will apply under the treaty, including criteria for qualifying as an arbitrator and possible early consideration of old cases, practitioners say. Page 237; Text, Page 249

IRS Official Says Joint Audits to Increase, U.K.-U.S. Exam Likely Soon

IRS Chief Counsel Donald Korb predicts cross-border joint examinations will increase in the coming years, saying the United States and the United Kingdom likely will conduct such an audit within five years. Page 231

OECD Adopts PE Approach in Commentary, Releases Article 7 Draft

The Organization for Economic Cooperation and Development acts to insert the separate entity approach to determine the profits of permanent establishments into the commentary of its Model Tax Convention and releases draft language that proposes to enshrine the concept in Article 7 of the model treaty by 2010. Page 242