top of page

Brand Equity Vs. Tax Equity: The AMP Controversy And The Taxman’s Dilemma


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.



Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

Submit Manuscript: Click here

Licensing: 

 

All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

 

Disclaimer:

The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

bottom of page