COVID-19 has made force majeure a hot topic in transfer pricing. The idea is that the pandemic was an unexpected development of such power, like a natural disaster, that transfer pricing agreements can be changed to reflect the changed economics of a changed world.
But is there any case authority to support this approach? In fact there is, from one of the largest US transfer pricing cases of the 1990s.Continue Reading “Mutual Dependence”: Authority for Force Majeure in Transfer Pricing