Transfer Pricing Issues of BEPS in the Light of EU Law

One of the aims of the BEPS Action Plan is to reduce existing leeway for multinational enterprises to shift profits by exploiting transfer pricing rules. Profit allocation is meant to be aligned with “real activity” and “value creation.” This article is devoted to the question of whether this extension of the arm's length approach is supported by the jurisprudence of the CJEU on taxation of intra-group dealings which has granted Member States discretion to discriminate against cross-border transactions within corporate groups only in so far as these transactions are “wholly artificial arrangements.”