There’s no denying that transfer pricing has become a key issue in the area of international tax. All businesses which trade internationally and have cross border transactions between group companies likely face transfer pricing issues, including inquiries from the tax authorities in one or more countries.
The result of adopting incorrect transfer prices could create risks of double taxation that can lead to one-sided IRS adjustments to U.S. taxable income. In addition, companies that do not maintain transfer pricing documentation may be exposed to non-deductible penalties and interest ranging from 20 to 40 percent of the increase in tax. Taken over multiple years, it can be a harmful blow to the finances of the international trading group which has budgeted diligently for its worldwide tax liabilities.
A significant number of countries now have transfer pricing legislation in place. Accordingly, businesses which trade internationally need coordinated advice and protection if they are to achieve their commercial aims.
We can help you with:
- Assisting with documenting intra-group prices
- Advising on prices for intra-group transactions
- Consulting on restructuring business functions
- Defending a group’s transfer pricing policies
Baker Tilly International
Baker Newman Noyes is an independent member of Baker Tilly International, a network of accountancy and business servicing firms committed to providing the highest quality service to clients across the world.
Baker Tilly International is the eighth largest network in the world, represented by 126 firms in 147 countries worldwide. We have an active program of sharing ideas through various groups and committees.
This membership allows for even greater resources for our international clients.
Need help with transfer pricing? Contact us today.
Related Resources (Read More in Our Library)
Stuart is a principal in the tax practice at Baker Newman Noyes, specializing in international tax compliance and consulting for both business and individual clients.
Cristina is a senior manager in the firm’s Boston office, specializing in international taxation. Cristina is responsible for developing the transfer pricing service line which is an emerging area in today’s global business climate.