PracticeConsultingChiltern buys software stake

Chiltern buys software stake

Chiltern Group, the rapidly expanding financial services group, has bought a stake in a US tax software house in an attempt to snatch transfer pricing consultancy work from the Big Five

Chiltern, which has poached eight staff from the Moores Rowland tax team this year, announced it had bought a 25% stake in Cross Border Solutions, for an undisclosed sum. CBS’s recently launched Price-Point is an international tax-planning package to help multinationals handle complex transfer-pricing regulations between subsidiaries.

The CBS software analyses worldwide information and produces a report on all company transfers, leaving a complete audit trail. CBS has established a wholly owned subsidiary in London to target the UK and Europe.

From next year, corporation tax self-assessment will require the transfer of goods and services across national borders to be priced as if going to a third party, using the so-called ‘arms length’ rule. Last month, the Inland Revenue announced plans to impose heavy fines on companies which ignore the new regulations.

Andre Bischoff, managing director of Chiltern, said: ‘Transfer pricing has been predominantly the domain of the Big Five with lots of high-cost ticking and bashing work.’

He revealed Chiltern was talking to leading UK tax software vendors, including Taxsoft, about distributing deals.

The software, priced from #10,000 for a single user, will provide an alternative to the Big Five stranglehold on the tax advice market. ‘Companies might require an independent review of their transfer pricing,’ he said.

A Big Five Source responded: ‘Different countries have different interpretations of transfer pricing, therefore software is not the total answer.’

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