APA Report Card @5 - Dawn of a New Era in TP Litigation?


In a recent and welcome initiative, CBDT released its first ever APA Annual Report (2016-17) providing a snapshot of the statistical and qualitative aspects of the Indian APA program. The Report indicates that the Indian APA program has matured over the last 4 years since its introduction and the signing of a record number of 152 APAs stands testimony to that fact. The Report also reveals that the APA office has been actively moving the inventory of cases (as evident from an impressive 29 months processing time for inking unilateral APAs as against USA’s average timeline of 34 months for unilateral APAs) but there are still 535 applications under processing as on March 31, 2017 (including 47 applications from the first round of filing in FY 2012-13). Stressing that the Indian APA program is poised to move ahead quicker than it has done so far, CBDT assures that the Indian Govt. is committed to strengthening the program by providing adequate resources so as to create conducive environment for global corporate giants to do business in India.  

Do you think APA closures are a turning point in the transfer pricing litigation landscape and if there are any other focus areas? What do you think would be outlook of tax authorities in review of annual compliance report to be filed by taxpayers? What do you think will be the impact on the Indian APA program in the post-BEPS world, e.g. BEPS guidance on profit split and intangibles?