The intricate problems involved in buying and selling intangible property has long been flagged as an important area for development of guidelines. As TPWeek reported in March, Caroline Silberztein, head of the transfer pricing unit at the OECD intends any study will provide more clarity for member countries; looking at topics such as the definition of soft intangibles, for example, decisions, strategy, service, quality, trust, satisfaction, knowledge, and relationships; marketing intangibles; workforce in place and business opportunities.

Advisers are thrilled to hear that new guidelines might be on the way.

"With the OECD's work on comparability and on methods drawing to a conclusion, and the business restructuring project being well down track, moving the focus to intangibles is a natural step and is to be welcomed," said Diane Hay, a special advisor on international tax at PricewaterhouseCoopers. "In particular, the revised Chapters I-III of the Guidelines now draw a clearer distinction between significant or high-value intangibles and the other (implicitly routine) kind. This is a subject that is ripe for more detailed consideration."

“The key issue to recognise is that the valuable right behind intangible property is the right to prevent others from using the same idea, either absolutely or without payment of a licence fee or royalty. The concept of intangibles was not invented for taxation. It is necessary to look at the law and commercial practice to see what happens at arm's length and to use this in guiding OECD thoughts. Intangibles are now the most valuable of assets that many companies own. Additional guidance from the OECD to standardise their tax treatment is most welcome,” said John Henshall, partner in the transfer pricing group at Deloitte in the UK.

The acknowledgment by the OECD that intangibles need special treatment is welcomed by Wagdy Abdallah, a professor of accounting at the Stillman School of Business at Seton Hall University in the US and author of several books and papers on transfer pricing for intangibles.