Threat looms for multinationals from transfer pricing

Threat looms for multinationals from transfer pricing

Divergent implementation of transfer pricing causes concern for multinational companies

Multinational companies are under threat from aggressive and inconsistent
transfer pricing rules, as governments become more proactive in claiming maximum
revenues from international groups.

A survey of revenue authorities in over 30 countries by Ernst & Young
found that multinationals were facing an adversarial transfer pricing
environment in a number new countries in addition to pressure in states with
already advanced rules for transfer pricing.

‘Companies must assume that tax authorities everywhere will have a complete
picture of their global tax position, and that any steps they take in one
country will have implications across their entire operation,’ warned John
Hobster, E&Y’s global markets leader for transfer pricing service.

Hobster said that matters were further complicated by diverging
implementation of transfer pricing rules, which hindered the resolution of
bilateral disputes.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

3m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

3m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

5m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

6m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

6m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

9m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

10m Alia Shoaib, Reporter