The Transfer Pricing Webinarwas hosted on Tuesday, 25 August 2020, 10.00am (CET) to discuss recent developments on the upcoming (L)IBOR transition and the resulting implications from a transfer pricing perspective.
About the webinar:
Interbank Offered Rates (IBORs) such as LIBOR (London Interbank Offer Rate) are deeply rooted in the financial system. They are estimated to underpin USD 350 trillion of financial products (e.g. bonds, derivatives, loans, mortgages) and serve as the basis for many contracts and valuations.
Following the 2007-08 financial crisis and a number of manipulation scandals, it became apparent that these reference rates were inadequate. In 2017, the Financial Conduct Authority (FCA), the UK body that regulates LIBOR, announced that the benchmark will be discontinued at the end of 2021. This announcement triggered what is now known as the IBOR transition.
Defining Alternative Reference Rates (ARRs), such as the Secured Overnight Financing Rate (SOFR) and the Swiss Average Rate Overnight (SARON), has been the first step in the IBOR transition. However, differences between ARRs and IBORs in terms of tenor, security and credit risk are creating uncertainty and complexity in what is seen as one of the biggest-ever transformation programs in the financial system.
From a transfer pricing perspective, the IBOR transition and the resulting amendments to existing contracts and valuations may give rise to issues to consider, such as tax and transfer pricing implications of amendments to existing contracts, step-ups/downs in rates during the life of existing contracts, and the arm’s length market value of arrangements.
To discuss this hot topic, the Deloitte team will be joined by Thomas Hug, Deputy Head Group Tax at Julius Baer Group.
10.00am to 11am CET:
• Greetings and introductions
• High-level overview of treasury and commercial considerations
• Overview of the key transfer pricing implications
• Industry perspective
• Q&A and closing
- Thomas Hug - Deputy Head Group Tax, Julius Bär Group
- Salim Damji - Partner, Transfer Pricing and Value Chain Alignment, Deloitte Switzerland
- Martin Krivinskas - Partner, Transfer Pricing and Value Chain Alignment, Deloitte Switzerland
- Georgy Galumov -Director, Transfer Pricing and Value Chain Alignment, Deloitte Switzerland
- Peter Nobs - Director, Head Treasury & Debt Advisory Services, Financial Advisory, Deloitte Switzerland
- Xavier Tinguely - Manager, Transfer Pricing and Value Chain Alignment, Deloitte Switzerland
If you would like to discuss more on this topic, please reach out to our key contacts below.