Transfer pricing agreements between associated companies must be formalised in intercompany agreements in order to make them legally binding, to comply with transfer pricing legislation and to ensure an appropriate line of defence against the challenges posed by tax authorities. If you don`t, your business is seriously and unnecessarily threatened. One of the most frequently asked legal questions in business-to-business agreements is whether a given agreement can be backdated. The short answer is “no.” Giving a document on a date before the date it was actually signed would almost certainly be a fraud. On the date of separation, shanda and SDG lead the other members of their respective groups to execute and abide by any intergroup agreement (with the exception of intergroup agreements to be implemented at a later date, as stated here in this agreement). First and foremost, it is important to ensure that intercompany agreements (ICAs) are geared towards the effective allocation of risks to the underlying business model. The awarding of risk contracts (ex-ante) must clearly determine who bears the potential costs that may be incurred in the event of negative results (ex-post). On the other hand, the party that bears this risk should also be rewarded with the most important (or all) potential benefits of positive outcomes. Data protection legislation does not recognize business groups. It treats all legal persons in the group as third parties. The rules for sharing and processing data therefore apply between companies within a group that would apply to external third parties. In a group structure, it inevitably becomes an interdependence. Employees may be employed by one company, computers and computer equipment considered “in the possession” of another for accounting purposes.
In these scenarios, the employer and the owner of the computer equipment provide IT services to other companies in the group. In particular in the financial services sector, regulation implies that some companies may only engage in limited activities that may not include the employment of staff or the possession of computer equipment, and a service company has been created to fulfill the role of the employer, thus creating a more complex group structure. If the companies in the group are in different jurisdictions, the provisions of the RGPD on limited transfers may also be relevant. A “limited transfer” is the transfer of personal data from an EEA country (EU Member States, Iceland, Norway and Lichtenstein) to a non-EEA country. There are strict rules for these transfers. Therefore, if a part of a group of companies is outside the EEA, it could also affect the choice of contractual terms of the restricted transfer.