Transfer Pricing Guide
The increasingly integrated nature of the global economy and the on-going importance of multinational businesses mean that questions of transfer pricing are some of the most significant tax issues that companies and tax administrations have to manage.
With transfer pricing enforcement having risen as a priority for tax authorities around the world over recent years; continued growth in the number and reach of multinational businesses has created a complex web of cross-border commercial transactions, and the world’s tax authorities want to ensure they tax their rightful share of the income.
It is important for taxpayers to have an effective strategy for responding to transfer pricing inquiries that can lead to tax adjustments, penalties, interest charges and even negative publicity. Transfer pricing inquiries can be extremely time consuming and involve a commitment of resources for assembling paperwork, preparing responses to inquiries, and negotiating with tax authorities.
But there are a variety of options available to help taxpayers overcome transfer pricing challenges, and business executives are well advised to seek the advice of those in the know in understanding their obligations and in order to avoid penalties or bad publicity.
That’s why we’ve spoken to leading transfer pricing experts to discuss resolving and avoiding transfer pricing related disputes, TP audit exposure, and the implementation of effective strategies for dealing with TP queries – and we hope our findings, contained within this guide, will help you to navigate the ever more complex transfer pricing landscape.