In-Depth Analysis of the Concept of Options Realistically Available in Transfer Pricing

Abstract

The purpose of this article is to provide an in-depth analysis of the transfer pricing concept of options realistically available (ORAs). The article starts by analysing the actual state of the art based on a cross-sectional examination of international guidance and then focusing on the Discussion Draft on Financial Transactions, issued by the OECD under the base erosion and profit shifting (BEPS) package. An assessment is also carried out on the topic’s different theoretical and practical features, as analysed in the major international literature to date. The key target is to discuss some possible critical aspects related to the applied usage of ORAs by both taxpayers and tax authorities.