Transfer pricing should be top of mind for multinationals right now.

Tax authorities, international aid organisations and treasury departments are all looking closely at this complicated aspect of international tax. Companies must ensure that the right amount of tax is being paid in the right jurisdictions as there are significant penalties for getting it wrong.

Transfer pricing is more than simply a tax risk however; it is also a reputational risk. So the major benefits of having your transfer pricing house in order are:

  • being able to defend the position you’ve taken with revenue authorities, and
  • improved risk management that goes beyond tax risk management.

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