Commission Decision of 22 December 2006 setting up an expert group on transfer pricing
Date: 2006-12-22
Institutions: European Commission
Subjects: self-employed person, tax system, transfer pricing

6.2.2007

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Official Journal of the European Union

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COMMISSION DECISION

of 22 December 2006

setting up an expert group on transfer pricing

(2007/75/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

on security annexed to the Commission's rules of Procedure
by Decision 2001/844/EC, ECSC, Euratom (3).

Having regard to the Treaty establishing the European Commu-
nity,

(9)

Whereas:

(1)

(2)

(3)

(4)

The study ‘Company Taxation in the Internal Market’ (1)
prepared by the Commission services
identified the
increasing importance of transfer pricing tax problems as
an Internal Market issue.

In its Communication ‘Towards an Internal Market without
tax obstacles — a strategy for providing companies with a
consolidated corporate tax base for their EU-wide activ-
ities’ (2) the Commission recognized the need to call upon
the expertise of specialists in the field of transfer pricing.

In 2002,
informally set up.

the ‘EU Joint Transfer Pricing Forum’ was

Since it has been established the ‘EU Joint Transfer Pricing
Forum’ has provided for a useful discussion forum between
Member States and the private sector which led the
Commission to propose two Codes of Conduct which were
subsequently adopted by Member States in the Council.

(5) Given the positive experience with that forum and the
Commission's continuous need for such a body,
the
continuation of the work of that forum should be laid
down in a formal act. It is therefore necessary to set up a
group of experts in the field of transfer pricing and to
define its tasks and its structure.

(6)

The expert group on transfer pricing should be composed
of governmental and private-sector experts in the field of
transfer pricing.

(7)

The expert group on transfer pricing should assist and
advise the Commission in transfer pricing tax issues.

(8) Rules on disclosure of information by members of the
group should be provided for, without prejudice to the rules

(1) SEC(2001) 1681 23.10.2001
(2) COM(2001) 582 final, 23.10.2001

the European Parliament and of

Personal data relating to members of the group should be
processed in accordance with Regulation (EC) No 45/2001
of
the Council of
18 December 2000 on the protection of individuals with
regard to the processing of personal data by the
Community institutions and bodies and on the free
movement of such data (4).

(10)

It is appropriate to fix a period for the application of this
Decision. The Commission will in due time consider the
advisability of an extension,

HAS DECIDED AS FOLLOWS:

Article 1

Expert group on transfer pricing

An expert group on transfer pricing, hereinafter referred to as the
‘group’, is set up with effect from 1 March 2007.

The group shall be known as ‘the EU Joint Transfer Pricing
Forum’.

Article 2

Tasks

The group's tasks shall be the following:

— to create a platform where business and national

tax
administration experts can discuss transfer pricing pro-
blems which constitute obstacles to cross-border business
activities within the Community

— to advise the Commission on transfer pricing tax issues

— to assist the Commission in finding practical solutions,
compatible with the OECD Guidelines (5),
in order to
achieve a more uniform application of transfer pricing rules
within the Community.

(3) OJ L 317, 3.12.2001, p. 1.
(4) OJ L 8, 12.1.2001, p. 1.
(5) OECD Transfer Pricing Guidelines for Multinational enterprises and

Tax administration, adopted in July 1995.

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Article 3

Consultation

(d) where, contrary to paragraph 5,

the member

is not

independent of any outside influence;

1. The Commission may consult the group on any matter
relating to transfer pricing.

(e) where, contrary to paragraph 6, the member has failed to
inform the Commission in good time of a conflict of
interest.

2. The Chairman of the group may advise the Commission that
it is desirable to consult the group on a specific question.

Article 4

Membership — Appointment

1. The group shall comprise up to 43 members composed as
follows:

(a) One representative from each Member State.

(b) Up to 15 representatives from the private sector.

(c) A Chairman

2. Members representing the Member States shall be appointed
by the national authorities concerned. Those members shall be
civil servants dealing with transfer pricing matters.

3.
Private sector members shall be appointed by the Commis-
sion from specialists with experience and competence in transfer
pricing issues.

4. Applicants deemed suitable for membership but not
appointed may be placed on a reserve list, which the
Commission may use for the appointment of replacements.

5.
Private sector members shall be appointed in a personal
capacity and shall advise the Commission independently of any
outside influence.

10. The names of members appointed in a personal capacity
shall be published on the website of DG TAXUD. The names of
shall be collected, processed and published in
members
accordance with Regulation (EC) Nr 45/2001.

Article 5

Operation

1. The group may with the agreement of the Commission, set
up sub-groups to examine specific questions under terms of
reference established by the group. Such sub-groups shall be
dissolved as soon as their mandates are fulfilled.

representative may ask experts or
2. The Commission's
observers with specific competence on a subject on the agenda
to participate in the work of the group, or in the deliberations or
work of a sub-group, if, in the opinion of the Commission, this is
necessary or useful.

In particular, representatives of the candidate countries and from
the OECD Secretariat may be invited as observers.

3.
Information obtained by participating in the deliberations or
work of the group or of a sub-group shall not be divulged if, in
the opinion of the Commission, that information relates to
confidential matters.

4. The group and its sub-groups normally shall meet on
Commission premises in accordance with the procedures and
schedule established by it. The Commission shall provide
secretarial services.

6. They shall
conflict of interests which might undermine their objectivity.

inform the Commission in good time of any

5. Commission officials with an interest in the proceedings
may attend these meetings.

7. The Commission shall also appoint a Chairman.

6. The group shall adopt its rules of procedure on the basis of
the standard rules of procedure adopted by the Commission.

8. Members of the group shall be appointed for a 2-year
renewable term of office. They shall remain in office until such
time as they are replaced or their term of office ends.

9. Members may be replaced for the remainder of their term of
office in any of the following cases:

(a) where the member resigns;

7. The Commission services may publish, or place on the
Internet (6), in the original language of the document concerned,
any summary, conclusion, or partial conclusion or working
document of the group.

Article 6

Reimbursement of expenses

(b) where the member is no longer capable of contributing

effectively to the group's deliberations;

The Commission shall reimburse travel expenses and, where
appropriate, subsistence expenses for members, experts and

(c) where the member does not comply with Article 287 of the

(6) http://ec.europa.eu/taxation_customs/taxation/company_tax/trans-

Treaty;

fer_pricing/forum/index_en.htm

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observers in connection with the group's activities in accordance
with the Commission's rules on the compensation of external
experts.

Article 7

Expiry

The members, experts and observers shall not be remunerated
for the services they render.

Done at Brussels, 22 December 2006.

The decision shall expire on 31 March 2011.

Meeting expenses shall be reimbursed within the limits of the
annual budget allocated to the group by the competent
Commission department.

For the Commission

László KOVÁCS

Member of the Commission