Does the “Realistic Options” Concept in the OECD TP Guidelines Undermine Legal Certainty and the Arm’s Length Standard?

Journal
Schoueri, L.E.; Santos, B.C. Fettermann Nogueira dos
International; OECD
Bulletin for International Taxation 2025 (Volume 79), No. 2
Price USD 45

This article contends that the undetermined concept of “options realistically available” that is used in the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations leads to relevant breaches of the principle of legal certainty and the arm’s length standard.