Brand Equity Vs. Tax Equity: The AMP Controversy And The Taxman’s Dilemma
- IJLLR Journal
- Feb 27
- 1 min read
Tanmay V. Dhakras, LLM (Taxation Law), Jindal Global Law School, Sonipat
ABSTRACT
Transfer pricing law has evolved in India with astonishing speed. India’s jurisprudence regarding transfer pricing cases has skyrocketed and the world acknowledges it. A key component of international tax, transfer pricing controls how multinationals deal with their Associated Enterprises (AEs). Since years now, the advertising, marketing and promotion (AMP) expenditures which are based upon market intangible assets is a major source of contention when they add to brand equity. The tax authorities of many jurisdictions have been contending that the issues related to these expenses which significantly contribute in the brand’s growth are not adequately termed as international transactions and hence, forego scrutiny. This paper, examines the issues relating to marketing intangibles, the jurisprudence around it and also discusses the recent trends and existing positions of the Indian judiciary and that of the revenue regarding these market intangibles.
