Helping multinational enterprises and professionals to resolve Transfer Pricing issues

Complete a transfer pricing review

Review the legal ownership and geographical location of operations.
Determine the drivers of profit, understand current markets, I/C service arrangements etc
Complete functional analysis to understand the functions performed by various divisions of the Group.
Identify the most important business risks at group level.
Understand what intangibles exist within the group, list and identify the intangibles relevant for TP purposes, understand what agreements are in place to use IP, understand the group policy on R&D, determine to what extent intangibles have been transferred or used by other connected persons.
Define and describe the controlled transaction.
Describe the functions performed by the tested party, the contribution to the overall supply chain.
Describe the risks borne by the tested party.
Select the most appropriate TP method based on assumptions and analysis performed at steps 1-4.
Select appropriate comparables.
Apply the results of the benchmarking and economic analysis to the facts of the relevant case.
Update the report incorporating the items referred to above.
Share the results with the client.



Tax audits and litigation

Analyse group TP policies, documentation and assessment from tax inspectors.
Assist the legal/tax team to analyse the output of the assessment and define the defence strategies, if necessary.
Analyse the strengths and weaknesses of the assumptions made by Revenue in determining the quantum of tax owed.
Prepare a reply to Revenue.
Follow up and assist the tax/legal team during the different phases of the litigation.



Due diligence/M&A

Analyse the value chain, current TP policies and supporting documentation.
Document compliance with TP policies.
Analyse the risks related to the TP policies of the business and determine if there is consistency with the buyer’s existing TP policies.
Provide input into the indemnities and warranties to be included in SPA.



Due diligence/Restructuring

Analyse the restructuring proposal.
Analyse existing TP documentation and determine if it is in compliance with OECD standards, local regulatory standards etc.
Consider how the restructuring proposal impacts on the value chain, functions and risks of the group.
Determine whether or not the TP policies and documentation adopted before the restructuring are still relevant.
Apply the TP business restructuring rules.
Define new TP policies and documentation if necessary.
Share the results with the client.



Negotiation of Advanced Pricing Agreements

Analyse group TP policies and documentation.
Draft APA to include outline of business model and economic studies.
Discussion with relevant competent authority.
Annual review of client performance in relation to the APA.



Country by Country Reporting

Collect information regarding the amount of revenue, profits, taxes and other indicators of economic activities for each tax jurisdiction in which the MNE group does business.
Assess the information collected and incorporate into the CBC Report
As a consequence of the above, assess TP risks and other BEPS related risks



Transfer Pricing Health Check

Analyse existing TP documentation.
Ensure that existing TP policy is in compliance with OECD standards on controlled transactions, confirm consistency with financial data and consider if I/C agreements are in compliance with TP documentation.
In circumstances where a different methodology or comparable is to be implemented, quantify the financial impact of the change.



Preparation of mater file and country file

Complete overview of the MNE group: global operations, TP policies, allocation of income and economic activity
Review the organisational structure and geographical location of entities, business activities, financial activities, intangibles and tax position
Briefly describe the principal risks influencing the business and functions contributing to the value chain, i.e. key functions performed, risks assumed and assets used
Document the important restructuring transactions, acquisitions and divestitures during the fiscal year
Describe the overall strategy for intangibles, including location of principal R&D facilities and management, and description of important transfers of interests in intangibles to Associated Enterprises
Provide overview of group finance, identify the central financing functions within the MNE group and complete overview of TP policies between associated enterprises
Review the MNE’s annual consolidated financial statement and briefly describe the existing unilateral APAs relating to income allocation amongst countries
Summarise all the above and identify potential risks and make appropriate adjustments