Transfer PricingOne of the most intriguing issues in taxation globally is Transfer Pricing.
Multi-national companies (MNCs) are persistently forced to seek tax-saving measures in their endeavour to increase their bottom-line. However, the complexity and extensive nature of tax compliance has significantly increased with an upturn in the volume and variety of cross-border transactions, Subsequently, Transfer Pricing has emerged as a vital ingredient to the growth and sustainability of MNCs.
Transfer Pricing, as a concept, is quite simple! It is a Profit Allocation Method between related entities in accordance with the arm’s length principle. Knowingly or unknowingly, any tax optimization processes in Supply Chain Management – with or without transfer pricing – are often challenged by Local Tax Authorities and subsequently may result in Tax Audits.
Over 70 countries around the world have adopted the OECD Transfer Pricing Guidelines but while adopting these Guidelines, each Local Tax Authority have their own interpretation of the Guidelines and in many cases with material difference with regard to various aspects of Transfer Pricing.
Due to the current economic environment, Tax chiefs around the world deploy various tactics to negate the impact of progressive government deficits including but not limited to increasingly complex and multifaceted rules, additional documentation requirements, stringent penalties, increased information exchange between Tax Authorities and improved training to their staff.
U Turn Tax Refund’s experienced Global Transfer Pricing Team can work with you to develop and implement a comprehensive Transfer Pricing Strategy to address these challenges allowing you to focus on developing your business.
Our services include:Transfer pricing compliance services
- Tax advisory services on transfer pricing compliance matters, e.g., transfer pricing overviews and updates
- Assistance in responding to transfer pricing enquiries and notices from the tax authorities
- Preparation, review and update of transfer pricing documentation on a local and regional levels
- Preparation of benchmarking analyses and studies
- Assistance with preparation, review and update of all other supporting documentation
- Negotiation with the tax authorities and tax representation services
- Preparation of unilateral, bilateral and multilateral APAs
- Representation in front of the tax authorities in case of transfer pricing audits
- Representation in courts and tribunals on transfer pricing cases and appeals
- Preparation of tax files for submission to the tax and other authorities
- Conduct of country specific, regional and global transfer pricing reviews and audits as part of company’s transfer pricing risk management process
- Support and representation in statutory transfer pricing audits