The Resource Feeling the heat : transfer pricing controversy is on the rise, and prudent taxpayers are taking steps now to manage risk of future audits

Feeling the heat : transfer pricing controversy is on the rise, and prudent taxpayers are taking steps now to manage risk of future audits

Label
Feeling the heat : transfer pricing controversy is on the rise, and prudent taxpayers are taking steps now to manage risk of future audits
Title
Feeling the heat : transfer pricing controversy is on the rise, and prudent taxpayers are taking steps now to manage risk of future audits
Creator
Subject
Language
eng
Summary
Transfer pricing continues to claim the attention of tax authorities around the world. Not only should taxpayers expect more transfer pricing examinations, but they should also expect those examinations, along with efforts to resolve them, to be more difficult and prolonged. Tax authorities have become increasingly sophisticated in their understanding of transfer pricing issues, and they are becoming more discerning in their selection and development of cases. Going forward, transfer pricing examinations will focus more and more on industries and transaction types perceived to pose a greater compliance risk and that thus carry a higher potential for controversy. This substantive focus will be complemented by increased tax authority resources and new administrative strategies and tools intended to increase taxpayer transparency and improve tax authority collaboration. No doubt, the examinations will be influenced by fiscal and political pressures that followed the global downturn and have led some tax authorities to apply versions of the arm's-length standard that frequently lead to conflicting results and instances of double taxation. Multinationals should anticipate transfer pricing controversy somewhere in the world. As transfer pricing examinations increase, so too will international disputes and the need for effective dispute resolution. EY's 2013 Global Transfer Pricing Survey shows that companies are feeling the pressure. Most notably, 66 percent of companies identified "risk management" as their highest priority for transfer pricing, a 32 percent increase over the responses to the EY surveys conducted in 2007 and 2010. To effectively manage this risk, companies need to develop a strategic approach to transfer pricing design, implementation, documentation, and defence. Being proactive can prove successful for limiting uncertainty, minimising the potential for significant controversy, and avoiding double taxation
Citation source
In: Transfer pricing international journal. - London. - Vol. 15 (2014),
http://library.link/vocab/creatorName
  • Ridgeway, J
  • Kulle, K
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • transfer pricing
  • risk management
  • audit
Label
Feeling the heat : transfer pricing controversy is on the rise, and prudent taxpayers are taking steps now to manage risk of future audits
Instantiates
Publication
Label
Feeling the heat : transfer pricing controversy is on the rise, and prudent taxpayers are taking steps now to manage risk of future audits
Publication

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