Anti-Abuse Notion of “Control over Intangible-Related Functions” Is Beyond the Arm’s Length Principle

This article takes the position that Example 17 (on intangibles) of the OECD Transfer Pricing Guidelines (2017), which focuses on the issue of control over a research activity and the relationship between control and entitlement to ownership of an intangible and the revenues it generates, is not grounded in theory or in empirical evidence under the arm’s length principle.