Peggs Ruchelman Transfer Pricing Economics or exp^2rt was founded in 2013 by Michael Peggs. Michael is a transfer pricing economist based in Toronto, Canada. Since 1998, he has practiced primarily in Canada and the U.S., leading global transfer pricing services teams. Michael has expert knowledge of transfer pricing principles and legislation around the world. His practice is focused on planning and strategy, transaction pricing analysis, transfer pricing controversy (i.e. exams and audits, Appeals, Tax Court), and representation of clients in MAP and APA matters before Competent Authorities.
2013 – present: Managing Director, Peggs Ruchelman Transfer Pricing Economics Ltd.
December 1, 2014 – present: Co-head of transfer pricing practice for Ruchelman PLLC, New York, NY
- Transfer pricing economics in support of transaction planning, IRS exam defense, business restructuring, Advance Pricing Agreements, transfer pricing documentation, and litigation support.
Selected notable matters:
- Litigation support work on successful 2015 U.S. District Court S.D. Fla. summary judgment motion in National Union Fire Insurance Company of Pittsburgh, as subrogee Eli Lilly and Company v. Tyco Integrated Security, LLC, et al. that a transfer price was the appropriate measure of damages in the largest pharmaceutical theft in U.S. history
- Helped a public registrant resolve a long-standing IRS examination and reach a favorable settlement on its final tax liability while in Chapter 11 bankruptcy.
- Estimated a buy-in payment for a dual-regulated non-custodial cryptocurrency exchange
2013 – 2019: Principal, Cadesky and Associates LLP, Toronto, Canada
Selected notable matters:
- Concluded an innovative taxpayer-initiated MAP agreement between Canada and the U.S. using Section 11 of Rev. Proc. 2015-40
- Used a sample of cash register receipts to prove statistically that the Canada Revenue Agency had incorrectly reassessed a popular Chinese restaurant for tax on unreported cash sales.
2010 – 2013: Partner, Transfer Pricing Services, Grant Thornton Consulting (an affiliate of Grant Thornton LLP), Toronto, Canada
- Practice founder, first national transfer pricing services leader (in collaboration with RCGT of Quebec), and first global practice co-head
- Quoted on the front page of the Globe and Mail business section
- Advised a litigation team on the effect of an automaker’s transfer pricing policy on its pension funding capacity following the 2008 financial crisis
- Single-handed execution of several Canada-US MAP cases
- Successful coordination with a Deloitte expert to achieve summary judgment in favour of the taxpayer in a CRA transfer pricing recharacterization position before the Tax Court of Canada
2002 – 2009: Senior Manager, Transfer Pricing Services, Grant Thornton LLP, Toronto, Canada
2001 – 2002: Manager, Grant Thornton LLP, Toronto, Canada
Assumed responsibility for all aspects of management of the Canadian practice (excepting Quebec), including engagement management and business development (both internal and external), reporting to an international tax partner in Toronto. Lead responsibility for CRA controversy matters at the audit and Appeals stages. Key Canadian contact for GTI member firm international tax and transfer pricing specialists.
2001 – Seconded to Grant Thornton UK as a Senior Analyst
2000 – 2001: Senior Analyst, Transfer Pricing Services, Grant Thornton LLP, Toronto, Canada
1998 – 2000: Analyst, Deloitte & Touche LLP, Toronto, Canada
Selected articles and media
Medtronic Transfer Pricing Dispute Part Deux: The Best Method Is Yet to Come? The Licensing Journal vol.42 no. 10 November/December 2022
Regular articles for Insights, the tax journal of Ruchelman PLLC, articles republished by Thomson Reuters TaxNet Pro and Lexis Nexis Law 360.
Various articles for Cadesky Tax, articles republished by Thomson Reuters TaxNet Pro
Quoted in Multinationals brace for tax overhaul, Globe & Mail newspaper, Monday, April 7, 2014
Commentary: OECD discussion draft on intangibles (with Wendy Nicholls, David Bowen, et. al.), Working Party No. 6 of the OECD Committee on Fiscal Affairs, September 13, 2012
Commentary: OECD review of administrative aspects of transfer pricing, Working Party No. 6 of the OECD Committee on Fiscal Affairs (with Wendy Nicholls, Rose Zhou et. al.), June 29, 2011
Quoted in Daimler pays $1.5-billion to end tax fight, Globe & Mail newspaper, Monday, Feb. 28, 2011
Commentary: OECD project on the Transfer Pricing Aspects of Intangibles, Working Party No. 6 of the OECD Committee on Fiscal Affairs, (with Glen Haslhofer and Horatio Morgan), September 15, 2010
International comparisons – how taxpayers and tax authorities are responding, implications for risk management, contributor of Canadian commentary, ed. Danny Beeton, in Transfer Pricing in a Recession – Tax Planning International Special Report (Bureau of National Affairs, Inc), April 2009
247(2)(b) or not (2)(b)? An Important Question, Tax Hyperion (Thomson Carswell), February 2008
The Issue of Comparability in Transfer Pricing, with Tifaine Human, BNA Tax Planning Transfer Pricing International, 2003
Commentary: Comparability issues in transfer pricing analysis, OECD Committee on Fiscal Affairs request for commentary from business on proposed revision to Chapters I-III of the OECD Guidelines, with Tifaine Human and Julie Dermine, 2003
Selected presentations
Biases, Heuristics, Blind Spots, and Pitfalls in I.R.S. Transfer Pricing Examinations, November 2018
What to Know When Investing in the U.S. – Transfer Pricing for Mid-Sized Corporations with Stanley Ruchelman, GTAAN, December 2017
Transfer Pricing for Mid-Sized Corporations with Stanley Ruchelman, October 2017
Transfer Pricing: A practical perspective on U.S. and foreign transfer pricing positions, Institute for Management Accounting Niagara, December 2016
BEPS Update with Stanley Ruchelman, New York State CPA Society Foundation for Accounting Education International Tax Seminar, January 28, 2016
Using a virtual data room for transfer pricing information sharing, TP Minds Americas Conference, Miami – March 2015, London – May 2015
Ownership Issues, Meeting with Business Representatives on the Transfer Pricing Aspects of Intangibles. Presentation to Working Party No. 6 of the Committee on Fiscal Affairs, 7-9 November 2011, OECD, Paris, with Glen Haslhofer
Panel discussion moderator, “Practical Solutions to Endless Issues: Advice from the Industry Experts” 15th Annual Transfer Pricing Update INFONEX, February 2, 2011
Grant Thornton’s Quarterly Tax Forum Series – Canadian Transfer Pricing Update ,Thursday, June 22 2006, Houston, Texas
Contemporaneous Documentation Workshop, INFONEX Annual Transfer Pricing Conference, January 19, 2006
International Structures and Qualifying Cost Contribution Arrangements, INSIGHT Advanced Transfer Pricing Course, Toronto, Ontario, January 15-16, 2003
Pricing Canada-U.S. intercompany transactions, COPAS National Meeting, Montgomery, Texas, April 25 2002, with Dan McKinley
‘Rates, regs and recent developments’ INSIGHT Advanced Transfer Pricing Forum, March 7-8, 2002, with Gary Dent
Education
Queen’s University, Kingston, Ontario – BA (Honours), Economics, 1997
Dalhousie University, Halifax, Nova Scotia – MA Economics – completed coursework only, thesis “Is conflict inherent in this VAR system? A time-series analysis of the strike and lockout rate in Canada” not submitted 1998
University of London, London, UK – Graduate Diploma in Economics, 2022
Memberships
IFA (Canadian branch)
Canadian Tax Foundation
Languages: English, French (advanced conversational, intermediate technical)