With transfer pricing in constant flux, companies need a holistic response that integrates practical, achievable steps to take today.
Transfer pricing is a complex issue that is in constant flux. Our 2019 Transfer Pricing and International Tax Survey reports that tax risk is by far the most critical issue driving transfer pricing strategies.
Given the risks, it’s never been more important for businesses to have accurate, up-to-date information that’s fast and easy to access. Here are six practical steps companies can take to keep pace with transfer pricing issues in all relevant jurisdictions.
1. Adopt a wide focus
Only a third of executives report their companies have fully compliant transfer pricing documentation in every country in which they operate, choosing instead to focus on scenarios viewed as having higher tax risk. That’s understandable, but with overall levels of transfer pricing tax risk rising rapidly, it’s time to take a more holistic approach.