A Tax Advisory Firm Powers Its Transfer Pricing Capabilities

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THE CLIENT: 

A large global tax advisory firm.

USERS:

The transfer pricing group..

Transfer pricing is one of the top international taxation issues faced by multinational enterprises (MNEs). Transactions can include the transfer of tangible goods, intangible assets, services, and loans. The “arm’s length” standard requires two related parties to set the same transfer price for an intercompany transaction as two unrelated parties would have done if they had been engaged in the same or similar transaction, under the same or similar circumstances. The price, therefore, reflects what two parties would have reached if bargaining in a competitive market.
The transfer pricing group at this large tax advisory firm helps its clients prepare reports that analyze the arm’s length nature of intercompany transactions. This ensures that the prices comply with government regulations, but also that the company has an optimal tax structure in place.