Commenting on the OECD BEPS proposals at the International Tax Review’s Global Transfer Pricing Forum in Washington, DC on September 23, Robert Stack, Treasury deputy assistant secretary (international tax affairs), suggested that the U.S. may not enact regulatory changes in response to the OECD recommendations.  Stack emphasized that the U.S. position remains focused on the arm’s-length standard.  He commented that many prefer transfer pricing to be based on people functions with readily identifiable jurisdictions, as opposed to assets and risks, which are highly mobile.  In response to the OECD Action 8 draft, which is directed at curbing profits reported to cash box companies in low-tax jurisdictions, Stack noted that the idea that a cash box is not entitled to a return is inconsistent with the arm’s-length standard.  He further questioned if returns to the cash box are reduced, where will the return go?  Stack stated that “the United States says it goes to where the people functions are the high-value people functions.  That, we think, often comes back to the United States, where all of this development is done, where the strategic decisions are made.”