Český finanční a účetní časopis 2010(2):63-83 | DOI: 10.18267/j.cfuc.68

Certain Important Aspects of Cost Contribution Arrangements in Financial Management

Tomáš Brabenec
Ing. Tomáš Brabenec - asistent; Katedra financí a oceňování podniku, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <tomas.brabenec@vse.cz>.

Cost contribution arrangements (CCAs) and Cost sharing agreements (CCAs) belong to the tools of modern finance management. Costs spent by associated enterprises on developing, producing or obtaining assets, services or rights (in general - benefits) are used for tax optimizing too. The main purpose of joint research and development, producing or obtaining benefits is to lower these costs as much as possible or to maximize the benefits. The problematic of transfer pricing and arm´s length principle in connection to CCAs, CSAs is mentioned in this article, too. Next, there is mentioned how to settle participation shares of the total cost and benefits contributions with respect to the OECD Transfer pricing for MNEs Guidelines and with respect to other significant regulations.

Keywords: Cost contribution arrangements; Cost sharing agreements; Transfer prices; Arm's length principle; Reasonable anticipated benefits; Relevant costs.
JEL classification: D21, G39, H25, M40

Published: June 1, 2010  Show citation

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Brabenec, T. (2010). Certain Important Aspects of Cost Contribution Arrangements in Financial Management. Czech Financial and Accounting Journal, 2010(2), 63-83. doi: 10.18267/j.cfuc.68
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    References

    1. Australian Taxation Office (2004): Taxation Ruling TR 2004/1 Income tax: international transfer pricing - cost contribution arrangements. Canberra, Australian Government - Australian Taxation Office, 2004.
    2. CFR (2010a): Code of Federal Regulations, Title 26, § 1.482.5. [on-line], Washington, D.C., Office of the Federal Register, c2010, [cit. 12. 3. 2010], <http://law.justia.com/us/cfr/title26/26-6.0.1.1.1.0.8.184.html>.
    3. CFR (2010b): Code of Federal Regulations, Title 26, § 1.482.7. [on-line], Washington, D.C., Office of the Federal Register, c2010, [cit. 12. 3. 2010], <http://law.justia.com/us/cfr/title26/26-6.0.1.1.1.0.8.187.html>.
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