Transfer pricing is complex…. getting it wrong can be costly
Transfer pricing policies and practices are complex. With the increase in international transactions between related parties, most tax authorities have introduced more rigorous documentation requirements and tougher compliance penalties and escalated their audit activities. Globally, the myriad of compliance requirements are further complicated by the different interpretations of transfer pricing principles by the tax authorities.
Inappropriate or ill-considered transfer pricing practices can result in protracted transfer pricing disputes with the tax authorities. The consequences of these audits can:
- Leave you open to potential compliance penalties, litigation and reputational risks;
- Make your company a more identifiable target for tax authorities in other countries;
- Increase the time you spend managing the audit internally, both in the local and parent entity.
At TPA we recognise the importance of transfer pricing to any business. We have therefore put together a team of experienced tax and transfer pricing specialists that work together with our TPA Group colleagues to ensure that you receive the highest level of support in managing your transfer pricing positions.