Descriptive Essay My Unforgettable Travels - 1245 Words

My Unforgettable Travels Visualizing a picture in your head can be so captivating and it can bring back memories you’d never thought you would remember. I visualized a picture of a love lock bridge in Paris, France because it is something that stood out to me when I was traveling. Everything about this area was amazing and breathtaking. I will always remember traveling to France and Spain because of how different other countries are than the United States. Going to these places really made me love exploring and learning new things about the world. When going to France, I really depicted it as a different place than it was. I thought it was going to be just like New York City with a little touch of different people. I was so incredibly wrong. I went there in February of this year and ever since then I can’t wait to go back to different countries. The lifestyle there was so serene and mesmerizing all at once. You felt this almost joy of just walking into certain places. I went to multiple different places there. For example, I went to the Palace of Versailles, Hotel Des Invalides, the Eiffel Tower and then art museums with painting like the Mona Lisa and much more. These places were spectacular and so different. The work of every building was hand crafted and made me wish I could live in Paris. The people there were a little rude to Americans, but that didn’t stop me from trying to converse with them as much as I could. I would always look up differentShow MoreRelatedArt as an Embodied Imagination22095 Words   |  89 Pagesbecomes more prominent depending on the context. They argue that feelings play a central role in consumer decision making and merit serious investigation, which, for this study, means that intertwining mind and body is crucial for creating an unforgettable consumer experience. The effort afoot to restore embodied realism to social scientiï ¬ c inquiry (Johnson 1999; Lakoff and Johnson 1999) has generated some of the m ost exciting research into consumer behavior. In this article, we address the linksRead MoreArt as an Embodied Imagination22095 Words   |  89 Pagesbecomes more prominent depending on the context. They argue that feelings play a central role in consumer decision making and merit serious investigation, which, for this study, means that intertwining mind and body is crucial for creating an unforgettable consumer experience. The effort afoot to restore embodied realism to social scientiï ¬ c inquiry (Johnson 1999; Lakoff and Johnson 1999) has generated some of the most exciting research into consumer behavior. In this article, we address the links

Essay about Henry David Thoreaus Enlightenment and Ideas

Civil Disobedience is one of Henry David Thoreaus most famous essays. One of the major problems most critics see with this essay deals with Thoreaus seemingly contradictory statements about society from the beginning to the end. Barry Wood, a well-known critical writer, attributes this change in beliefs to the enlightenment of Thoreau in jail. While I agree with Wood that Thoreau does achieve a form of enlightenment, I will show that Thoreaus views regarding the society he lived in never actually changed throughout the essay: the only aspect of the essay that changed was Thoreaus means of attacking his society. Thoreau uses his enlightened state to shift from an overt, blatant form of attack to a more subtle, psychological one.†¦show more content†¦It is the quality of using ones mind that Thoreau designates as key to being human; therefore, the mass of men Thoreau describes earlier in the essay are sub-human because they lack this quality. Thoreau does not hint around his opinions in this first section, he makes sure the reader knows his views on society. However, at the end of the essay Thoreaus opinions become disguised. In order to understand why this occurs, we must explain briefly about the narrative and its significance in terms of Thoreaus views on society. The narrative section of Thoreaus essay gives perhaps the most insight into his life and the reasons for his changing ideas. Barry Wood describes the narrative as a key portion of the essay that brings about the awakening of vision, and spiritual renewal of Thoreau as he leaves the prison (Wood 421). As he is locked into a small cell, Thoreau reflects that he still did not once feel confined within the walls of stone and mortar that made up the jail he was forced to inhabit. He even goes so far as to say he believes the societal wall his townsmen would have to climb to be free is still a more difficult to one to climb or break through, before they could get to be as free as ThoreauShow MoreRelatedWalden and Transcendentalism Essay1545 Words   |  7 Pages Henry Thoreau’s masterpiece, Walden or a Life in the Woods, shows the impact transcendentalism had on Thoreau’s worldview. Transcendentalism is a philosophy that asserts the primacy of the spiritual over the material. Transcendentalism puts the emphasis on spiritual growth and understanding as opposed to worldly pleasures. Thoreau’s idea of transcendentalism stressed the importance of nature and being close to nature. He believed that nature was a metaphor for spiritual enlightenment. A walkRead MoreEssay The Incredible Henry David Thoreau1081 Words   |  5 Pagesthe integrity of their government. Henry David Thoreau was one such man. Henry Thoreau was born in Concord, Massachusetts to a successful pencil manufacturer John Thoreau and a strong-willed, quick-witted mother, Cynthia. Early on Henry enjoyed reading books and observing nature in solitude. He inherited the gift of gab and intellectual inquiry from his mother as well as both Puritan and abolitionist ideals. In 1837 he graduated from Harvard. In 1841 Henry moved into Ralph Waldo Emersons homeRead MoreThe True Transcendentalist: Thoreau and Emerson775 Words   |  3 Pages Throughout the years there has been multiple different types of American literary movements. Like the Puritan which was a time of when people wrote personal poems, journals, and their personal diaries. The next is Enlightenment period was a time in which it was mostly about science and logic also it included political writings. Another wonderful literary movement is the Romanticism which was filled with emotion, individuality, and nature. But one of the greatest literary movements the one that willRead MoreAnalysis Of Henry David Thoreau s Walden861 Words   |  4 Pagessits on their shoulder and tells them whether or not they are going to live or die each day; no one knows when he or she is going to die. If you knew you were going to die tomorrow would you live differently? Henry David Thoreau in an excerpt of his book Walden addresses complex philosophical ideas including death, simplifying everyday life and religion using: carefully chosen, meditative word choice, comparisons and other philosophies and stories intended for the audience of Concord during the 1800’sRead MoreThoreau And Transcendentalism1518 Words   |  7 Pages Henry David Thoreau’s words that â€Å"disobedience is the true foundation of liberty† and that â€Å"the obedient must be slaves† is a political statement that never lost its topicality during the Romantic era. Thoreau served as an important contributor to the philosophical and American literary movement known as New England Transcendentalism. Nature and the conduct of life are two central themes that are often weaved together in his essays and books that were published in the Romantic era of literatureRead MoreHenry David Thoreau, Walden, and Transcendental Values for Education1000 Words   |  4 PagesHenry David Thoreau was testing transcendental values when he took up residence at Walden Pond in 1845. During his time of simple living at the pond, he studied nature and applied those observations to h umans and everyday life. He was always learning from the woods, pond, meadows and animals in the natural world around him. Nature was his classroom and everything was an opportunity to learn. In Thoreau’s book, Walden , written at the pond, he theorized that education could come through an intimacyRead MoreHenry David Thoreau : A Transcendentalist1438 Words   |  6 PagesHenry David Thoreau: A Transcendentalist Religion and politics are perhaps the most important topics of discussion, and paradoxically, the ones least discussed. Our differences cause us to shy away from such depth in our conversations with others and it is a remarkable human being who can share her opinion honestly on the subjects, and even more so, transcend the current popular opinions of the time. Henry David Thoreau was a man such as this. He spoke out against an unjust society and challengedRead MoreDavid Thoreau s Life And The Early Works Of The Poet2145 Words   |  9 PagesDivinity School, his first wife’s death, his travels abroad, his study of Hinduism, and the works of the poet William Blake all have tremendous importance to the development of Transcendentalism. These ideas and his contributions to the movement would also influence most markedly Henry David Thoreau’s short life and the early works of the poet Walt Whitman. Ralph Waldo Emerson was born on May 25th, 1803, in Boston, Massachusetts to William Emerson and his wife Ruth Haskins Emerson. Emerson attendedRead MoreTranscendentalism Essay1866 Words   |  8 Pagesuniverse†. This led to Emerson resigning from his position and setting off to europe in 1832; attempting to learn some of what their philosophers thought. The English romantics had ideas that attracted Emerson with his newfound thoughts. Around this time, Emerson met with a man studying Immanuel Kant’s works named Frederick Henry Hedge. This allowed Emerson to learn of Kant and his transcendental idealism. While discussing Kant, Emerson only took certain pieces back to America with him. In 1833, EmersonRead MoreEarly American Literature Essay1511 Words   |  7 Pagesyears of development throughout American before it produced the first great generation of American writers such as, Washington Irving, Ralph Waldo Emerson, Nathaniel Hawthorne, Herman Melville, Henry David T horeau, Edgar Allan Poe and Emily Dickinson, just to name a few. There was a sense of enlightenment that spread over America in the 18th century. Many of the stories reflected the sense of freedom that came with the revolution. Consider Washington Irving, he was among the first American writers

The Acoustics of Speech in Individuals Who Stutter Free Essays

The Acoustics of Speech in Individuals who Stutter: Literature The Acoustics of Speech in Individuals who Stutter Introduction Research concerning acoustics in children who stutter, who have recovered from stuttering and adult stutterers shows that there is a lack of coherency in the data collected and reforms need to be made to the methods involved. The research that has been conducted on stuttering pertains mostly to the condition in children; stuttering is most prevalent in younger children and in most cases will be corrected by the later years of youth. Researchers working within the field are confronted by many problematic factors when both conducting their research and specifically in analysing data. We will write a custom essay sample on The Acoustics of Speech in Individuals Who Stutter or any similar topic only for you Order Now Diverse methods of data compilation and independent methods of interpretation mean that what one scientists concludes from an experiment may not support established theories and existing information on the subject. It can be assumed that analysis of acoustics in stuttering needs to be done with a specific framework that all researchers can work from. Issues like the diagnosis of stuttering complexes from mild, moderate and severe; the focus on frequency changes; and subtyping have all been encountered and brought up for review by researchers who wish to have a more fully rounded database from which to study stuttering in all its forms. A review of literature on the subject exposes many difficulties within the field of research and offers suggestions on how these might be addressed and overcome. Once a basic premise for observation, study and analysis is reached, the database will be much more comprehensive and useful to future research. Literature Review Acoustic analysis is the foundation to stuttering research conducted by many different scientists and scholars; the ways in which this research is conducted vary, however, and therefore can produce subsequently varied results and different ways of looking at stuttering itself. Some researchers are of the opinion that stuttering is heavily influenced by the actual perception of listeners, and that though analysis of reaction and perception of acoustics in stutterers it is possible to more fully comprehend those characteristics of speech that are a part of the disorder (Amir, Yairi). Through analysis of speech patterns in preschool aged children, the researchers concluded that interval duration in speech patterns must exceed 70 ms to be considered normal speech; under 50 ms interval duration was therefore attributed to stutterers. Some researchers have taken acoustic analysis to a new level with the use of the computer as a more failsafe analytical tool; due to a lack of specific acoustic parameters by which to classify stuttering the computer offers a more solid foundation for diagnosis and treatment (Brosch, Hage, Johannsen). Research conducted by these authors was inconclusive because of a lack of cohesive data on the subject, however it is their belief that with further study one might better understand the correlations between specific acoustics and the different stages of stuttering. The primary factor thought to be attributed to stuttering in different stages is age. Chang, Ohde and Conture believe that it is a disorganization of specific factors of speech, in particular the transition rate of speech formation, that can be cited as a precursor to stuttering. This research is key to the development of tuttering studies because currently there are very little data or theoretical models to explain the conditions that lead to stuttering in children. Through acoustic analysis not only of children and adults who currently stutter, but the acoustic analysis of children who will later develop a stutter, these researchers believe that more will be understood about the progression of the disorder and subsequen tly the treatment methods themselves. Given the generalities of much stuttering data, it has been concluded that subtyping of the disorder would help greatly with further research and the uture specialization of treatments and diagnoses (Yairi). In this case, the acoustic analysis carried out by researchers would be made very specific and varied: attention would be paid to transition rates, vowel duration, particularities of speech disfluency and other inconsistencies attributed to stuttering. Yairi’s research has yet to lead to subtypes of the disorder, however the belief remains that through more acoustic analysis, enough data will be gathered to start separating the disorder into more than one general field. Frequency changes and second formant transitions in reschool children who stutter persistently and who have recovered from the condition show general differences in speech patterns between the two groups. Most poignant was the fact that the research showed frequency ch anges in persistent stutterers were discreet while the recovery group showed marked frequency changes (Subramanian, Yairi, Amir). Research such as this helps to support Yairi’s theory that subtyping may be useful in the field. Along these lines, Armson and Kalinowski pointed out the difficulties in performing acoustic analysis on stutterers when the condition itself may be changing the data. These researchers feel that to properly assess acoustic data they must learn how to separate those factors out which cause stuttering, and which are inherent in individuals only after one has begun to stutter. The acoustics of one individual in a pre-stuttering state might show related frequencies and vowel duration, as well as the same speech rate and consonant-vowel repetitions to that of a stutterer; the researchers maintain, however, that the cognitive functions of one who stutters might be significantly different that that of an individual who does not stutter but will later develop the disorder. Cognitive and acoustic factors of stuttering are currently inextricable from those of the prestutterer, and until these can be separated the data gathered on the subject will remain generalized and of less value than it might be. As well as this, information on acoustics must be analyzed both during the stutter and during normal speech in the same individual. Paden, Abrose and Yairi studied the phonological acoustics of stutterers and non-stutterers to ascertain whether there were any significant differences between the two groups. Through the observation of children over a two-year span, attention was paid to not only current differences in the phonological skills of the children but the changes in those skill levels over time. They found that the phonological skill level of children who had recovered from stuttering were markedly higher than that of children who currently stutter; over the course of two years, however, the skill levels were developed and no significant difference could be shown. Flipsen Jr. , Hammer and Yost point out that perhaps the major flaw in the field is the fact that Clinicians are esponsible for identifying stuttering cases and labelling them either mild, moderate or severe. This means that Clinicians must rely on their own individual acoustic analysis to interpret the severity of stuttering case by case, and in doing so are likely to be inconsistent. Personal analysis of the acoustics of several different individuals who stutter means that although analysis is based on regimented di sfluency factors, such as vowel duration and frequency, relying solely on acoustic interpretation though listening cannot be scientifically sound. The researchers propose that a better method must be contrived in a study that supports Brosch, Hage and Johanssen’s computer analysis theory. In keeping with the idea that research on stuttering must be more specialized, Louis, Myers, Faragasso, Townsend and Gallagher have studied a particular disorder that is often attributed to stutterers but which they insist is a different disorder. Cluttering is an irregularity that has to do with the rate of speech: people with this condition will either speak more rapidly than normal or they will have inconsistencies in the rate of speech. While many researchers will have cluttering placed in the same field as stuttering, Louis (et al) believes that it is generalizations like this that cripple the scientific community. Acoustic analysis of cluttered speakers shows clearly that the condition is not the same as stuttering: while stuttering has a more clustered effect on the phonemes of speech, cluttering is less specific to certain vowel and consonant groups. Gohinho, Ingham, Davidow and Cotton have discovered that in treatment of stuttering, the reduction of short-deviation phonetic intervals has a direct affect on the condition. Acoustic analysis of normal stuttering and manipulated speech in normal stutterers suggested that phonetic interval distribution in the two speech groups were generally different; this theory was inconclusive. In terms of treatment, however, it has been useful and is thought to offer new possibilities in treatment procedures. Ingham, Fox, Ingham, Xiong, Zamarripa, Hardies and Lancaster conducted their own research based on gender differences between stutterers. Data were collected in terms both of acoustics and of cerebral blood flow in adults. While females are more likely to recover from stuttering in childhood and males are generally more susceptible to the condition, this research found that the stages of recovery were not significantly different between the gender groups. The researchers concluded that chronic stuttering was related to abnormal speech-motor and auditory region interactions. Healey and Ramig conducted research into stuttering that was specific to treatment, specifically treatment length and its effect on differing severities of the condition. Acoustic analysis of patients undergoing treatment showed that the severity of each case made no significant difference to recovery and the transition from one level to another; similarly treatment time made no difference in the progression and recovery of stutterers. Max and Caruso also explored treatment options, finding that fluency adaptation through the process of repeating specific readings was improved over other methods of treatment. With specific phonological aspects in the readings, designed to ontain certain phrases and vowel-consonant groups that give stutterers trouble normally, these were given to treatment patients to repeat until any changes were observed in speech patterns. Repetition treatments have traditionally very popular and due to their superiority over many other methods these treatments continue to dominate in the field. Specific study of the different aspects of language and acoustics means that a scenario for stuttering can be pieced together slowly and fo rmed of many different speech parts as well as cerebral and other physical data (Natke, Grosser, Sandrieser, Kalveram). Research into the effect of stressed syllables within speech and stuttering was conducted with reference to the length of such syllables. Natke and his colleagues hypothesized that stressed syllables were responsible for stuttering in many individuals, and studies proved that these were indeed catalysts for stuttering in most cases. Whether or not duration of stressed syllables has anything to do with disfluency is not yet apparent. Currently, Yaruss believes, no correlation can be drawn between utterance rates and response time latency. His own research explored these and consequently still was not supportive of the theory that conversational speaking rates were actually related to response time latency. He does believe that if more research were conducted into this area, a correlation would indeed be found; inadequate methods of acoustic analysis are cited as the reason why hypotheses such as these remain unproven. In Yairi’s response to the criticisms of Wingate on his theories of diversity in the field of acoustic study, he asserts that there are many different ways to study stuttering and that these varying methods should be valued. Wingate proposes, like many scholars, that there should only be one method of study so that subsequent data compilations are relevant to one another and more easily formed into future subdivisions of the disorder. While Yairi does not dispute the value of specialization within the field for the sake of greater knowledge and better treatment plans, he does maintain that a fundamental diversity among researchers is a positive attribute. In terms of acoustic analysis, this means that the lack of cohesion between existing research would persist. Evaluation of Published Research and Conclusions Overwhelmingly, researchers in the specific linguistic field that study stuttering and its related conditions are asking for continuity in research methods and data organization. While independent researchers and study groups might be able to find their own way of cultivating date, studying acoustics of stutterers, non-stutterers and recovering stutterers and interpreting this data, it is essentially of no use to the rest of the field unless aspects of the study can be repeated. Researchers like Brosche, Hage and Johanssen are particularly forward thinking in their approach to acoustic analysis, because unlike so many of their colleagues they are not continuing to rely on what they believe to be inferior techniques. The use of computer analysis in terms of stuttering acoustics not only means that a discrepancy between professionals can be ruled out in the future but that further information can be gathered concerning speech patterns that are undistinguishable to the unaided ear. Yairi is also correct when he says that there is more than one way to study stuttering. If all researchers relied on exactly the same techniques then no breakthroughs could be expected in the field; despite this fact most acoustic analysts who wish to better understand stuttering simply want a basic framework upon which to base their own studies and interpret the results of others. If a certain degree of flexibility could be maintained in acoustic analysis while certain fundamental factors were incorporated, researchers would be in a better position to interpret and present their own results in relation to the work of colleagues. Factors that might feature in each research project might nclude vowel duration, second formant transition, conversational speed and other specific disfluency forms. By using these factors in all research related to stuttering, whether the study is based on such factors or not, will mean that although two research projects might be based on completely different theories the results can still be comparatively put together. If one research projec t focuses on brain activity and blood flow during stuttered speech, and another focuses on frequency, results may still have relevance to one another because of the use of basic acoustic analysis. Coherency is needed in this field of research so that results and future treatments are made clearer. Implementing basic acoustic analyses in every research project will help to form a stuttering database that can be referenced by every researcher. Reference List Amir, O. , Yairi, E. (2002). The effect of temporal manipulation on the perception of disfluencies as normal or stuttering. Journal of Communication Disorders, vol. 35, 63-82. Armson, J. , Kalinowski, J. (1994). Interpreting results of the fluency speech paradigm in stuttering research: Difficulties in separating cause from effect. Journal of Speech and Hearing Research, vol. 37, 69-82. Brosch, S. , Hage, A. , Johanseen, H. (2002). Prognostic indicators for stuttering: the value of computer-based speech analysis. Brain and Language, vol. 82, 75-86. Chang, S. , Ohde, R. , Conture, E. , (2002). Coarticulation and Formant Transition Rate in Children who Stutter. Vanderbilt University. Flipsen Jr. , P. , Hammer, J. , Yost, K. (2005). Measuring Severity of Involvement in Speech Delay: Segmental and Whole Word Measures. American Journal of Speech-Language Pathology, vol. 14, 298-312. Godinho, T. , Ingham, R. , Davidow, J. , Cotton, J. (2006). The Distribution of Phonated Intervals in Individuals who Stutter. Journal of Speech, Language and Hearing Research, vol. 49, 161- 171. Healey, E. , Ramig, P. (1989). The Relationship of Stuttering Severity and Treatment Length to Temporal Measures of Stutterers’ Perceptually Fluent Speech. Journal of Speech and Hearing Disorders, vol. 54, 313-319. Ingham, R. , Fox, P. , Ingham, J. , Xiong, J. , Zamarippa, F. , Hardies, L. , Lancaster, J. (2004). Brain Correlates of Stuttering and Syllable Production: Gender Comparisons and Replication. Journal of Speech, Language and Hearing Research, vol. 47, 321- 341. Louis, K. Myers, F. , Faragosso, K. , Townsend, P. , Gallaher, A. (2004). Perceptual Aspects of Cluttered Speech. Journal of Fluency Disorders, vol. 29, 213-235. Max, L. , Caruso, A. , (1998). Adaptation of Stuttering Frequency During Repeated Readings: Associated Changes in Acoustic Parameters of Perceptually Fluent Speech. Journal of Speech, Language and Hearing Research, vo l. 41, 1265-1281. Natke, U. , Grosser, J. , Sandrieser, P. , Kalveram, K. (2002). The Duration Effect of the Stress Component in Stuttering. Journal of Fluency Disorders, vol. 27, 305-318. TermPaper? Blog. com Paden, E. Ambrose, N. , Yairi, E. (2001). Phonological progress during the first 2 years of stuttering. University of Illinois at Urbana-Champaign. Subramanian, A. , Yairi, E. , Amir, O. (2003). Second formant transitions in fluent speech of persistent and recovered preschool children who stutter. Journal of Communication Disorders, vol. 36, 59-75. Yairi, E. (2001). Letters to the Editor. Journal of Speech, Language and Hearing Research, vol. 44, 585-597. Yairi, E. (2007). Subtyping Stuttering I: A Review. Journal of Fluency Disorders, vol. 32, 165-196. Yaruss, J. (1997). Utterance Timing and Childhood Stuttering. Elsevier Science. How to cite The Acoustics of Speech in Individuals Who Stutter, Papers

Tax Competition and BEPS of Globalization †MyAssignmenthelp.com

Question: Discuss about the Tax Competition and BEPS of Globalization. Answer: Introduction: The Dutch authority in a taxation ruling concluded that the amount paid by the Starbucks in Netherland for coffee roasting activity is an arm length transaction. The European Commission examined the ruling of the Dutch authority. The remuneration paid by the Starbucks is determined based on the report of transfer pricing that applied the TNMM. This amount is calculated based on the fixed percentage of cost base that includes all the cost to which star buck manufacturing has added value. The profit earned in excess of the taxable remuneration by the star buck manufacturing is transferred to a group outside Netherland as a tax deductible royalty expenses. This policy of the star bucks was criticized by the commission the two grounds. The first criticism was for inflated price that Starbucks manufacturing paid to the Switzerland Starbucks for the coffee beans. The second criticism was that the royalty paid for the Roasting of coffee beans does not reflect the current market value (Gorms en, 2016). The arm's length principle is applied based on the comparing the situation of transaction between two independent companies and intra group transactions. The comparison can be useful if the economic entities compared is sufficiently comparable. As per Article 8b of Dutch Corporate Income Tax Act 1969 and in accordance with international standards, the APS should be used in determining the arm's length remuneration for the purpose of transfer pricing. It is assumed that Starbucks manufacturing will use the arm's length transfer prices in conducting transactions with the related distributors. It should be noted that there is a need to test whether the company in incomparable situations are actually and legally hand equally (Gunn Luts, 2015). In the system the commission does not apply the noncommissioned OECD convention for model tax but focuses is on the general principles of equal fiscal treatment under the European law. The methodology that has been adopted for providing the report regarding Transfer pricing does not provide an approach that is reliable in determining the market result. Therefore, it can be said that the arm's length principle has not been fulfilled. In the court of Justice, it was confirmed that if in the case of intergroup transfers the method of tax does not comply with the arm's length principle then this would mean that selective advantage is given to the concerned company (Thomson Hardwick, 2017). Application of OECD and BEPS guidelines In this case, OECD guidelines are used for recommending the method for determining the arm's length pricing. There are wide range of OECD guidelines and the application of different guidelines will result in wide range of amount for taxable basis. It has been seen that based on the facts and circumstances of the individual taxpayers not all the approximations made are correct. The OECD guideline in paragraph 6.1 provides that royalty is a recurring payment based on the output of the user and in some cases based on Profit. In this case, the payment of royalty is not based on output, sale or profit. It has been saying that royalty fluctuates from year to year but the sales have not shown the same the fluctuations. Therefore, in this case it can be said that the OECD guidelines has not been followed in this case (Gonzlez, 2017). In this case, the European Commission scrutinizes the ruling of the Luxembourg tax authorities. The ruling confirmed the taxable income of the entity Fiat that is based in Luxembourg and the financial services that is provided by entity to other group companies. The company determines the taxable income based on the principle of transactional net margin method. In this case of Fiat taxable income is ascertained by determining the required rate of return on the risk capital by using the method of Capital Asset pricing model (Lyal, 2015). It was argued by the commission that the complex and artificial method used for calculating the taxable profit does not reflect the existing market conditions. The Commissioner further argued that certain unjustifiable assumptions was made in determining the capital base. The estimated remuneration that is used for determining the taxable income is very low compared to the market rate. Therefore, it was concluded that fiat has paid tax only on small p ortion of their earnings. The policy followed by the company resulted in taxable profit that is 20 times lower than the existing market conditions (Wattel, 2016). Consideration of ECJ in determining the arms length transaction In the case of Fiat, it is the opinion of the European Commission that due to the unjustifiable economic assumptions in the application of transfer pricing method the capital base is lower than the actual capital. In addition to this in the Fiat case, it is the opinion of the European commission that the remuneration applied to the lower capital base does not reflect the actual market rate (Mason, 2017). The Fiat finance and trade provided financial services to intragroup car companies. As a result, the company was engaged in different activities which many fiat companies across Europe. On comparing the activities of the Fiat finance with other banks, the income of the Fiat finance could have been determined. However, the ruling suggested a more complex method of determining income. In accordance with the OECD transfer, pricing guidelines transfer price should be set at the market rate. In this case Fiat Finance services has provided loan to inter group companies at a lower rate. Therefore, it can be said that transfer-pricing guideline of OECD has been violated. In this case, the organization for economic cooperation and development guideline has been be misapplied (Chisholm, 2017). The OECD transfer pricing guidelines for the multinational companies was first drafted on June 27 1995. This guideline have been developed continuously and updated regularly resulting in the current guideline. In the OECD Guidelines the guidance relating to the implementation of the arm's length principle that is used for valuation for the tax purpose in the cross border transactions are provided. In the globalized economy, it is the responsibility of the governments to ensure that the multinational enterprises does not transfers the profit artificially to other jurisdictions. The government should ensure that the tax base reported by the multinational enterprise should reflect the economic activity undertaken by the enterprise in that country. From the taxpayers prospective the transfer pricing guideline is important to eliminate the double taxation in the cross border transaction between the associated enterprises (Cachia, 2017). The transactional method is given priority by the OE CD guidelines as it is considered the most direct method of determining comparability. In case the transactional method is not applicable then transactional net margin method or profit split method is used for establishing comparability. In the OECD guidelines, the CUP is not given priority in the transactional method. If the results of the transactions are comparable then according to the OECD rule, business strategies are considered (Mason, 2017). The strategies includes expansion of market, market penetration, savings of cost and others. In the transactional net margin method, the profitability of a state of transaction is compared with other transactions. This is used to determine whether transfer between inter group companies are in par with other unrelated companies. The BEPS report suggested transfer pricing guidelines this amendments was implemented in the OECD guidelines. On analyzing the cases, it can be seen that the European Commission has found that advance pricing agre ement provided by Netherland to Starbucks and Luxembourg to Fiat subsidiaries are illegal state aids. In the preliminary decision, the commission concluded that selective tax advantage was granted by Luxembourg to fiat financing company. In Netherland, selective tax advantage was given to Starbuck coffee roasting company star buck manufacturing. In the case of Starbucks, it was the opinion of the European Commissioner that advance-pricing agreement has sanctioned wrongly the accessories payments made to be related parties. The commission found that because of this sanction most of the profit of the company was shifted abroad where it was not taxed. The Commissioner held that the service provided by the Fiat finance to other subsidiaries is similar to that of a bank. Therefore, it was unacceptable to calculate the taxable profit based on percentage return on capital employed for the financing activity. Therefore, it can be seen that the commission has considered and implemented the O ECD guidelines and BEPS recommendation for determining the arm's length transaction for intra group services (Douma Kardachaki, 2016). The Article 107 (1) of the Treaty functioning of the European Union provides that if a member states provides any aid through the resources of the state that distorts the competition among the member states is considered as illegal and incompatible in the trade between inter member states. In determining the state aid the concept of advantage and selectivity are distinctly important (Douma Kardachaki, 2016). However, in the recent cases of the commission it can be seen that the focus has been the examination of "selective advantage" rather than separately analyzing the requirements. It can be seen that the Commissioner has deviated from its earlier practice where it consistently assessed the presence of selectivity and advantage in a separate manner. In the earlier state aid investigations, the commission did not challenge the application of its own transfer-pricing rule by the member states for specific transfer pricing agreements. It has been seen that the new approach of the comm ission has immensely affected the practical applications. In the transfer pricing cases, it can be seen that the commission has disagreed with the application of the principle of arm's length transactions. It should be noted that the commission has not challenged the transfer pricing law that have been implemented on the involved countries instead (Evertsson, 2016). However, the commission has challenged the transfer prices that have been agreed on the tax ruling that are not in consistent with commissions interpretation of the arms length transaction. In these cases, the Commission has arrived at different conclusions that the tax officials and the commission regarded it the absolute truth. The commission concluded that the decision of the tax officials have provided selective tax advantages without considering the fact that weather similar advantages would have been granted to comparable circumstances. The consequences of this conclusion is that any administrative decisions relati ng to tax is a subject to 10 years uncertainty. The State aid is not a suitable tool to deal with complex transfer price in situation that are covered in the text rulings. Therefore, number of concern is raised in the investigation of the commission (Bauckloh et al., 2017). The fundamental principle of a tax law is that changes are not applied retrospectively but in future. It is necessary that the companies should be able to reliably estimate the tax obligation so that they can appropriately structure their investment. The tax rulings only deals with domestic tax laws and treaty law for specific business activity or investment structure. The changing of the tax rule with retrospective effect for unpaid taxes for up to 10 years questions the certainty of the laws and rules. The BEPS action plan concluded that the premises on which the loopholes in the Global tax system is address is through adoption of legal changes in the Global coherence. It is done by providing the business predi ctability and certainty. The commission did not respect these basic premises as the decision lacks Global coherence and have increased uncertainty (Morgan, 2016). In the European Union the members sovereign Nations and has the right to design their own tax rules. It can be said that state aid cannot be used as a tool to undermine the sovereignty of the member states. The investigation of the commission currently seems to be violating the sovereignty of the member states. The organization for economic cooperation and development has voice concerned in its BEPS Action Plan. The concern was that the consensus-based framework is replaced with the unilateral measures. This could lead to chaos and uncertainty in the Global tax system. In addition to this, it could also lead to the emergence of double taxation system. In providing its recommendations, OECD adheres to ambitious schedule in order to combat the perception of tax avoidance by the multinational Enterprises. The action of the co mmission undermine the effort of the organization for economic cooperation and development for establishing a conscious based framework post BEPS. In selecting the appropriate method for transfer, pricing the OECD guideline has provided five methods to approximate the arm's length transaction between two companies of the same group. These methods are comparable uncontrolled price method, cost plus method, the transaction net margin method, the resale minus method and the transactional profit split method. In the OECD guidelines, there is a distinction between transactional profit method and traditional transaction methods (Campbell Helleloid, 2016). The guidelines have declared a preference for traditional method of transactions like CUP over the transactional methods such as TNMM. It is explain in the guideline that multinational corporations should retain the freedom to apply the method that is described in the guidelines for establishing the transfer price if the methods satisfies the consulate principal. The European Court of Justice has earlier examined the issue of transfer pricing rule in the cases of direct taxation. In recent years, the European Court of Justice provides a more substantial judicial discussion on the applicability and liability of transfer pricing rules particularly the arms length transactions. The cases have shown that European Court of Justice wants more reconciliation between the traditional Transfer pricing rule and the requirements related to fundamental freedoms (Hassan, 2016). The decisions of the European court of Justice has shown that the concept of arm's length transaction is applied in a more general way in the cases. In this background, it can be said that a reconciliation between the European tax law and treaty law is possible. The analysis if the recent decision have shown that European Court of Justice has moved the transfer pricing control in a state that the arm's length standard will gradually be eroded and a new model has to be developed for its replacement. The main reason for the replacement will be that the court does not give importance to the economic consideration of the multinational corporations. Therefore, it can be said that OECD guideline is more desirable than the guideline provided by the European court of Justice (Kavanagh Robins, 2015). The decision of case of the commission has huge implications. It is predicted that because of the decision of the commission it has become more troublesome for the European Union States to give favorable tax rulings to the companies. The example of the recent cases are the state aid that is given to Apple by Ireland. In particular, these decisions have shown that any favorable tax rulings is regarded as an illegal favorable benefit to the company (Haslehner, 2016). The European court of Justice by the decision of these cases is sending a clear message that any favorable benefits given to a multinational enterprise by remember state through tax ruling is illegal state aid. It is because this hampers the competition among the markets of the member states. The European Court of Justice argues that justifiable basis should be used for collecting tax. The European Court of Justice states that unjustifiable and complex process should not be used for computing tax that is payable. Therefore , it can be said that European court of Justice have ensured that the tax collection system becomes less Complex and is based on a justifiable ground. Based on this it can be concluded that the above cases and the decision of the European Court of Justice has simplified or improved the taxation system currently prevalent (Honore, 2015). The European Commission has highlighted the need for supporting the developing countries for utilizing the domestic resources by encouraging development in line with good system of taxation. In this section the transfer pricing as adopted by the developing countries are discussed. The initiative taken by the European Commission has a very favorable outcome in the development and overall business environment of the developing countries. The ECJ has argued that the transfer pricing and the arms length principle helps in maintaining the fair market value and thus encourages competition. This has a positive impact on the activities related to international trade and multinational Enterprises. The globalization has encouraged cross border transactions between the related entities as a result the transfer pricing has become important agenda. It can be estimated that among all the business transaction worldwide the two third of them is between inter group companies. It is more important for the developing countries because the economies have recently opened up (Law, 2014). This process of opening the economy have attracted investment from the large multinational enterprises as foreign direct investment. In the absence of any Transfer pricing guideline, it will not be possible for tax administration and the multinational Enterprise to refer to a proper guideline. However, it has been seen that the developing countries face is a lot of trouble dealing with Transfer pricing. The main problem is that the local administration is largely inexperienced with regard to transfer pricing. The organization for economic cooperation and development has initiated many efforts for establishing common grounds in the transfer pricing matters (Blockx, 2016). In order to provide sound recommendations relating to transfer pricing the generally the considerations should be made about the economic and political conditions. The sound recommendations can be made after assessing the legal prec onditions and preconditions related to the tax matters. Therefore, it can be said that the consideration of the European Court of Justice has helped the nonmember states or developing countries in understanding the meaning of transfer pricing. The considerations has helped the developed countries to develop a regulation that will not encourage complex on unjustifiable basis for calculating tax. The decision will promote a more simple and justifiable basis of taxation in the developing countries. It is expected that multinational Enterprises operating in the developing countries will transfer products to related enterprises at the market price and not add discount price. Hence, it will help to maintain the competition in the market. Based on the above discussion it can be said that the consideration of the European Court of Justice has helped the developing countries to maintain a more competitive market (Cerioni, 2016). Reference Bauckloh, T., Hardeck, I., Wittenstein, P. U., Zwergel, B. (2017). Do Some Multinational Firms Benefit from Competitive Tax Advantages in Europe? Evidence from Stock Price Reactions to EU State Aid Investigations. Blockx, J. (2016). The Belgian Excess Profit Exemption: Tax Incentives for Multinational Groups as State Aid.Journal of European Competition Law Practice. Cachia, F. (2017). Analysing the European Commissions Final Decisions on Apple, Starbucks, Amazon and Fiat Finance Trade.EC Tax Review,26(1), 23-35. Campbell, K., Helleloid, D. (2016). Starbucks: Social responsibility and tax avoidance.Journal of Accounting Education,37, 38-60. Cerioni, L. (2016). Book Review: Advanced Issues in International and European Tax Law.Intertax,44(3), 284-287. Chisholm, B. C. (2017). ICRICT Looking to a Future of Actual Tax Reform: An Organizational Analysis of the Independent Commission for the Reform of International Corporate Taxation.U. Cin. L. Rev.,85, 231-319. DeNovio, N. J., Righini, E., Gibbs, N. N. (2016). State Aid: What It Is, and How It May Affect Multinationals and Tax Departments.Tax Executive,68, 15. Douma, S., Kardachaki, A. (2016). The Impact of European Union Law on the Possibilities of European Union Member States to Adapt International Tax Rules to the Business Models of Multinational Enterprises.Intertax,44(10), 746-754. Evertsson, N. (2016). Corporate tax avoidance: a crime of globalization.Crime, law and social change,66(2), 199-216. Gonzlez, S. M. (2017). State Aid, Tax Competition and BEPS: Comments on the European Commission's Decisions on Transfer Pricing Rulings. Gormsen, L. L. (2016). EU State Aid Law and Transfer Pricing: A Critical Introduction to a New Saga.Journal of European Competition Law Practice,7(6), 369-382. Gunn, A., Luts, J. (2015). Tax Rulings, APAs and State Aid: Legal Issue.EC Tax Review,24(2), 119-125. Haslehner, W. (2016). Double Taxation Relief, Transfer Pricing Adjustments and State Aid Law. InState Aid Law and Business Taxation(pp. 133-161). Springer Berlin Heidelberg. Hassan, M. (2016). Global Tax news.TAXtalk,2016(57), 14-17. Honore, M. (2015). State Aid and Taxation-All Clear. Kavanagh, J., Robins, N. (2015). Corporate Tax Arrangements Under EU State Aid Scrutiny.Eur. St. Aid LQ, 358. Law, B. V. (2014). Transfer pricing: A step forward for Albania.changes. Lyal, R. (2015). Transfer pricing rules and state aid.Fordham Int'l LJ,38, 1017. Mason, R. (2017). State Aid Special ReportPart 2: Legitimate Expectations. Mason, R. (2017). Tax Rulings as State Aid FAQ. Morgan, J. (2016). Corporation tax as a problem of MNC organisational circuits: The case for unitary taxation.The British Journal of Politics and International Relations,18(2), 463-481. Thomson, A., Hardwick, E. (2017). The European Commission's Application of the State Aid Rules to Tax: Where Are We Now?.Journal of Taxation of Investments,34(3). Wattel, P. J. (2016). Stateless Income, State Aid and the (Which?) Arms Length Principle.Intertax,44(11), 791-801. Wattel, P. J. (2016). The Cat and the Pigeons: Some General Comments on (TP) Tax Rulings and State Aid After the Starbucks and Fiat Decisions. InState Aid Law and Business Taxation(pp. 185-194). Springer Berlin Heidelberg.

Tax Competition and BEPS of Globalization †MyAssignmenthelp.com

Question: Discuss about the Tax Competition and BEPS of Globalization. Answer: Introduction: The Dutch authority in a taxation ruling concluded that the amount paid by the Starbucks in Netherland for coffee roasting activity is an arm length transaction. The European Commission examined the ruling of the Dutch authority. The remuneration paid by the Starbucks is determined based on the report of transfer pricing that applied the TNMM. This amount is calculated based on the fixed percentage of cost base that includes all the cost to which star buck manufacturing has added value. The profit earned in excess of the taxable remuneration by the star buck manufacturing is transferred to a group outside Netherland as a tax deductible royalty expenses. This policy of the star bucks was criticized by the commission the two grounds. The first criticism was for inflated price that Starbucks manufacturing paid to the Switzerland Starbucks for the coffee beans. The second criticism was that the royalty paid for the Roasting of coffee beans does not reflect the current market value (Gorms en, 2016). The arm's length principle is applied based on the comparing the situation of transaction between two independent companies and intra group transactions. The comparison can be useful if the economic entities compared is sufficiently comparable. As per Article 8b of Dutch Corporate Income Tax Act 1969 and in accordance with international standards, the APS should be used in determining the arm's length remuneration for the purpose of transfer pricing. It is assumed that Starbucks manufacturing will use the arm's length transfer prices in conducting transactions with the related distributors. It should be noted that there is a need to test whether the company in incomparable situations are actually and legally hand equally (Gunn Luts, 2015). In the system the commission does not apply the noncommissioned OECD convention for model tax but focuses is on the general principles of equal fiscal treatment under the European law. The methodology that has been adopted for providing the report regarding Transfer pricing does not provide an approach that is reliable in determining the market result. Therefore, it can be said that the arm's length principle has not been fulfilled. In the court of Justice, it was confirmed that if in the case of intergroup transfers the method of tax does not comply with the arm's length principle then this would mean that selective advantage is given to the concerned company (Thomson Hardwick, 2017). Application of OECD and BEPS guidelines In this case, OECD guidelines are used for recommending the method for determining the arm's length pricing. There are wide range of OECD guidelines and the application of different guidelines will result in wide range of amount for taxable basis. It has been seen that based on the facts and circumstances of the individual taxpayers not all the approximations made are correct. The OECD guideline in paragraph 6.1 provides that royalty is a recurring payment based on the output of the user and in some cases based on Profit. In this case, the payment of royalty is not based on output, sale or profit. It has been saying that royalty fluctuates from year to year but the sales have not shown the same the fluctuations. Therefore, in this case it can be said that the OECD guidelines has not been followed in this case (Gonzlez, 2017). In this case, the European Commission scrutinizes the ruling of the Luxembourg tax authorities. The ruling confirmed the taxable income of the entity Fiat that is based in Luxembourg and the financial services that is provided by entity to other group companies. The company determines the taxable income based on the principle of transactional net margin method. In this case of Fiat taxable income is ascertained by determining the required rate of return on the risk capital by using the method of Capital Asset pricing model (Lyal, 2015). It was argued by the commission that the complex and artificial method used for calculating the taxable profit does not reflect the existing market conditions. The Commissioner further argued that certain unjustifiable assumptions was made in determining the capital base. The estimated remuneration that is used for determining the taxable income is very low compared to the market rate. Therefore, it was concluded that fiat has paid tax only on small p ortion of their earnings. The policy followed by the company resulted in taxable profit that is 20 times lower than the existing market conditions (Wattel, 2016). Consideration of ECJ in determining the arms length transaction In the case of Fiat, it is the opinion of the European Commission that due to the unjustifiable economic assumptions in the application of transfer pricing method the capital base is lower than the actual capital. In addition to this in the Fiat case, it is the opinion of the European commission that the remuneration applied to the lower capital base does not reflect the actual market rate (Mason, 2017). The Fiat finance and trade provided financial services to intragroup car companies. As a result, the company was engaged in different activities which many fiat companies across Europe. On comparing the activities of the Fiat finance with other banks, the income of the Fiat finance could have been determined. However, the ruling suggested a more complex method of determining income. In accordance with the OECD transfer, pricing guidelines transfer price should be set at the market rate. In this case Fiat Finance services has provided loan to inter group companies at a lower rate. Therefore, it can be said that transfer-pricing guideline of OECD has been violated. In this case, the organization for economic cooperation and development guideline has been be misapplied (Chisholm, 2017). The OECD transfer pricing guidelines for the multinational companies was first drafted on June 27 1995. This guideline have been developed continuously and updated regularly resulting in the current guideline. In the OECD Guidelines the guidance relating to the implementation of the arm's length principle that is used for valuation for the tax purpose in the cross border transactions are provided. In the globalized economy, it is the responsibility of the governments to ensure that the multinational enterprises does not transfers the profit artificially to other jurisdictions. The government should ensure that the tax base reported by the multinational enterprise should reflect the economic activity undertaken by the enterprise in that country. From the taxpayers prospective the transfer pricing guideline is important to eliminate the double taxation in the cross border transaction between the associated enterprises (Cachia, 2017). The transactional method is given priority by the OE CD guidelines as it is considered the most direct method of determining comparability. In case the transactional method is not applicable then transactional net margin method or profit split method is used for establishing comparability. In the OECD guidelines, the CUP is not given priority in the transactional method. If the results of the transactions are comparable then according to the OECD rule, business strategies are considered (Mason, 2017). The strategies includes expansion of market, market penetration, savings of cost and others. In the transactional net margin method, the profitability of a state of transaction is compared with other transactions. This is used to determine whether transfer between inter group companies are in par with other unrelated companies. The BEPS report suggested transfer pricing guidelines this amendments was implemented in the OECD guidelines. On analyzing the cases, it can be seen that the European Commission has found that advance pricing agre ement provided by Netherland to Starbucks and Luxembourg to Fiat subsidiaries are illegal state aids. In the preliminary decision, the commission concluded that selective tax advantage was granted by Luxembourg to fiat financing company. In Netherland, selective tax advantage was given to Starbuck coffee roasting company star buck manufacturing. In the case of Starbucks, it was the opinion of the European Commissioner that advance-pricing agreement has sanctioned wrongly the accessories payments made to be related parties. The commission found that because of this sanction most of the profit of the company was shifted abroad where it was not taxed. The Commissioner held that the service provided by the Fiat finance to other subsidiaries is similar to that of a bank. Therefore, it was unacceptable to calculate the taxable profit based on percentage return on capital employed for the financing activity. Therefore, it can be seen that the commission has considered and implemented the O ECD guidelines and BEPS recommendation for determining the arm's length transaction for intra group services (Douma Kardachaki, 2016). The Article 107 (1) of the Treaty functioning of the European Union provides that if a member states provides any aid through the resources of the state that distorts the competition among the member states is considered as illegal and incompatible in the trade between inter member states. In determining the state aid the concept of advantage and selectivity are distinctly important (Douma Kardachaki, 2016). However, in the recent cases of the commission it can be seen that the focus has been the examination of "selective advantage" rather than separately analyzing the requirements. It can be seen that the Commissioner has deviated from its earlier practice where it consistently assessed the presence of selectivity and advantage in a separate manner. In the earlier state aid investigations, the commission did not challenge the application of its own transfer-pricing rule by the member states for specific transfer pricing agreements. It has been seen that the new approach of the comm ission has immensely affected the practical applications. In the transfer pricing cases, it can be seen that the commission has disagreed with the application of the principle of arm's length transactions. It should be noted that the commission has not challenged the transfer pricing law that have been implemented on the involved countries instead (Evertsson, 2016). However, the commission has challenged the transfer prices that have been agreed on the tax ruling that are not in consistent with commissions interpretation of the arms length transaction. In these cases, the Commission has arrived at different conclusions that the tax officials and the commission regarded it the absolute truth. The commission concluded that the decision of the tax officials have provided selective tax advantages without considering the fact that weather similar advantages would have been granted to comparable circumstances. The consequences of this conclusion is that any administrative decisions relati ng to tax is a subject to 10 years uncertainty. The State aid is not a suitable tool to deal with complex transfer price in situation that are covered in the text rulings. Therefore, number of concern is raised in the investigation of the commission (Bauckloh et al., 2017). The fundamental principle of a tax law is that changes are not applied retrospectively but in future. It is necessary that the companies should be able to reliably estimate the tax obligation so that they can appropriately structure their investment. The tax rulings only deals with domestic tax laws and treaty law for specific business activity or investment structure. The changing of the tax rule with retrospective effect for unpaid taxes for up to 10 years questions the certainty of the laws and rules. The BEPS action plan concluded that the premises on which the loopholes in the Global tax system is address is through adoption of legal changes in the Global coherence. It is done by providing the business predi ctability and certainty. The commission did not respect these basic premises as the decision lacks Global coherence and have increased uncertainty (Morgan, 2016). In the European Union the members sovereign Nations and has the right to design their own tax rules. It can be said that state aid cannot be used as a tool to undermine the sovereignty of the member states. The investigation of the commission currently seems to be violating the sovereignty of the member states. The organization for economic cooperation and development has voice concerned in its BEPS Action Plan. The concern was that the consensus-based framework is replaced with the unilateral measures. This could lead to chaos and uncertainty in the Global tax system. In addition to this, it could also lead to the emergence of double taxation system. In providing its recommendations, OECD adheres to ambitious schedule in order to combat the perception of tax avoidance by the multinational Enterprises. The action of the co mmission undermine the effort of the organization for economic cooperation and development for establishing a conscious based framework post BEPS. In selecting the appropriate method for transfer, pricing the OECD guideline has provided five methods to approximate the arm's length transaction between two companies of the same group. These methods are comparable uncontrolled price method, cost plus method, the transaction net margin method, the resale minus method and the transactional profit split method. In the OECD guidelines, there is a distinction between transactional profit method and traditional transaction methods (Campbell Helleloid, 2016). The guidelines have declared a preference for traditional method of transactions like CUP over the transactional methods such as TNMM. It is explain in the guideline that multinational corporations should retain the freedom to apply the method that is described in the guidelines for establishing the transfer price if the methods satisfies the consulate principal. The European Court of Justice has earlier examined the issue of transfer pricing rule in the cases of direct taxation. In recent years, the European Court of Justice provides a more substantial judicial discussion on the applicability and liability of transfer pricing rules particularly the arms length transactions. The cases have shown that European Court of Justice wants more reconciliation between the traditional Transfer pricing rule and the requirements related to fundamental freedoms (Hassan, 2016). The decisions of the European court of Justice has shown that the concept of arm's length transaction is applied in a more general way in the cases. In this background, it can be said that a reconciliation between the European tax law and treaty law is possible. The analysis if the recent decision have shown that European Court of Justice has moved the transfer pricing control in a state that the arm's length standard will gradually be eroded and a new model has to be developed for its replacement. The main reason for the replacement will be that the court does not give importance to the economic consideration of the multinational corporations. Therefore, it can be said that OECD guideline is more desirable than the guideline provided by the European court of Justice (Kavanagh Robins, 2015). The decision of case of the commission has huge implications. It is predicted that because of the decision of the commission it has become more troublesome for the European Union States to give favorable tax rulings to the companies. The example of the recent cases are the state aid that is given to Apple by Ireland. In particular, these decisions have shown that any favorable tax rulings is regarded as an illegal favorable benefit to the company (Haslehner, 2016). The European court of Justice by the decision of these cases is sending a clear message that any favorable benefits given to a multinational enterprise by remember state through tax ruling is illegal state aid. It is because this hampers the competition among the markets of the member states. The European Court of Justice argues that justifiable basis should be used for collecting tax. The European Court of Justice states that unjustifiable and complex process should not be used for computing tax that is payable. Therefore , it can be said that European court of Justice have ensured that the tax collection system becomes less Complex and is based on a justifiable ground. Based on this it can be concluded that the above cases and the decision of the European Court of Justice has simplified or improved the taxation system currently prevalent (Honore, 2015). The European Commission has highlighted the need for supporting the developing countries for utilizing the domestic resources by encouraging development in line with good system of taxation. In this section the transfer pricing as adopted by the developing countries are discussed. The initiative taken by the European Commission has a very favorable outcome in the development and overall business environment of the developing countries. The ECJ has argued that the transfer pricing and the arms length principle helps in maintaining the fair market value and thus encourages competition. This has a positive impact on the activities related to international trade and multinational Enterprises. The globalization has encouraged cross border transactions between the related entities as a result the transfer pricing has become important agenda. It can be estimated that among all the business transaction worldwide the two third of them is between inter group companies. It is more important for the developing countries because the economies have recently opened up (Law, 2014). This process of opening the economy have attracted investment from the large multinational enterprises as foreign direct investment. In the absence of any Transfer pricing guideline, it will not be possible for tax administration and the multinational Enterprise to refer to a proper guideline. However, it has been seen that the developing countries face is a lot of trouble dealing with Transfer pricing. The main problem is that the local administration is largely inexperienced with regard to transfer pricing. The organization for economic cooperation and development has initiated many efforts for establishing common grounds in the transfer pricing matters (Blockx, 2016). In order to provide sound recommendations relating to transfer pricing the generally the considerations should be made about the economic and political conditions. The sound recommendations can be made after assessing the legal prec onditions and preconditions related to the tax matters. Therefore, it can be said that the consideration of the European Court of Justice has helped the nonmember states or developing countries in understanding the meaning of transfer pricing. The considerations has helped the developed countries to develop a regulation that will not encourage complex on unjustifiable basis for calculating tax. The decision will promote a more simple and justifiable basis of taxation in the developing countries. It is expected that multinational Enterprises operating in the developing countries will transfer products to related enterprises at the market price and not add discount price. Hence, it will help to maintain the competition in the market. Based on the above discussion it can be said that the consideration of the European Court of Justice has helped the developing countries to maintain a more competitive market (Cerioni, 2016). Reference Bauckloh, T., Hardeck, I., Wittenstein, P. U., Zwergel, B. (2017). Do Some Multinational Firms Benefit from Competitive Tax Advantages in Europe? Evidence from Stock Price Reactions to EU State Aid Investigations. Blockx, J. (2016). The Belgian Excess Profit Exemption: Tax Incentives for Multinational Groups as State Aid.Journal of European Competition Law Practice. Cachia, F. (2017). Analysing the European Commissions Final Decisions on Apple, Starbucks, Amazon and Fiat Finance Trade.EC Tax Review,26(1), 23-35. Campbell, K., Helleloid, D. (2016). Starbucks: Social responsibility and tax avoidance.Journal of Accounting Education,37, 38-60. Cerioni, L. (2016). Book Review: Advanced Issues in International and European Tax Law.Intertax,44(3), 284-287. Chisholm, B. C. (2017). ICRICT Looking to a Future of Actual Tax Reform: An Organizational Analysis of the Independent Commission for the Reform of International Corporate Taxation.U. Cin. L. Rev.,85, 231-319. DeNovio, N. J., Righini, E., Gibbs, N. N. (2016). State Aid: What It Is, and How It May Affect Multinationals and Tax Departments.Tax Executive,68, 15. Douma, S., Kardachaki, A. (2016). The Impact of European Union Law on the Possibilities of European Union Member States to Adapt International Tax Rules to the Business Models of Multinational Enterprises.Intertax,44(10), 746-754. Evertsson, N. (2016). Corporate tax avoidance: a crime of globalization.Crime, law and social change,66(2), 199-216. Gonzlez, S. M. (2017). State Aid, Tax Competition and BEPS: Comments on the European Commission's Decisions on Transfer Pricing Rulings. Gormsen, L. L. (2016). EU State Aid Law and Transfer Pricing: A Critical Introduction to a New Saga.Journal of European Competition Law Practice,7(6), 369-382. Gunn, A., Luts, J. (2015). Tax Rulings, APAs and State Aid: Legal Issue.EC Tax Review,24(2), 119-125. Haslehner, W. (2016). Double Taxation Relief, Transfer Pricing Adjustments and State Aid Law. InState Aid Law and Business Taxation(pp. 133-161). Springer Berlin Heidelberg. Hassan, M. (2016). Global Tax news.TAXtalk,2016(57), 14-17. Honore, M. (2015). State Aid and Taxation-All Clear. Kavanagh, J., Robins, N. (2015). Corporate Tax Arrangements Under EU State Aid Scrutiny.Eur. St. Aid LQ, 358. Law, B. V. (2014). Transfer pricing: A step forward for Albania.changes. Lyal, R. (2015). Transfer pricing rules and state aid.Fordham Int'l LJ,38, 1017. Mason, R. (2017). State Aid Special ReportPart 2: Legitimate Expectations. Mason, R. (2017). Tax Rulings as State Aid FAQ. Morgan, J. (2016). Corporation tax as a problem of MNC organisational circuits: The case for unitary taxation.The British Journal of Politics and International Relations,18(2), 463-481. Thomson, A., Hardwick, E. (2017). The European Commission's Application of the State Aid Rules to Tax: Where Are We Now?.Journal of Taxation of Investments,34(3). Wattel, P. J. (2016). Stateless Income, State Aid and the (Which?) Arms Length Principle.Intertax,44(11), 791-801. Wattel, P. J. (2016). The Cat and the Pigeons: Some General Comments on (TP) Tax Rulings and State Aid After the Starbucks and Fiat Decisions. InState Aid Law and Business Taxation(pp. 185-194). Springer Berlin Heidelberg.