FOLLOWING THE GROWING FOCUS and increasing requirements on multinational companies’ tax affairs, Thomson Reuters has announced Worldwide Private Company Database from ONESOURCE Transfer Pricing.
The transfer pricing method sees multinational corporations value and purchase goods and services moving across international borders from one of the group’s corporate entities to another.
An ‘arm’s length’ principle is typically applied, which sees internal transactions within the group charged at the market rate, although multinationals have recently been accused of using the process to shift profits to low-tax jurisdictions.
The database is specifically designed for transfer pricing professionals in one of the most contentious areas of the tax environment. Large companies including Google, Starbucks and Amazon have attracted stinging criticism from the government and media alike, with Public Accounts Committee chair and Labour MP Margaret Hodge (pictured) branding their practices “evil”.
The database provides private company information compiled from a global network of local data providers, and delivers country-specific financial data and standardised financial line-items for complete transparency on how the data should be applied.
Negative attention from government departments and committees, along with mainstream media has seen the cost of non-compliance with transfer pricing rules both material and reputational, said Thomson Reuters managing director for tax and accounting Joe Harpaz.
He said: “Tax authorities are no longer satisfied with weak documentation and comparables that don’t take local trade into account. Governments are demanding clear documentation with regional comparables to support transfer pricing methods.”
“Using public local data is challenging in these markets, as there are only a limited number of public records available,” said Brian Tully, vice president and head of transfer pricing for ONESOURCE at Thomson Reuters. “Finding a good comparables set is critical to achieving the highest level of practical comparability.”
BDO has announced a worldwide technology and services collaboration with Microsoft that will accelerate the digital transformation of their clients’ businesses
Colin responds to the news that four in ten accountants are worried that technology and automation will make their jobs obsolete in the future
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year
Bronwyn Williamson, Managing Director of Adams Digital Marketing outlines the top five points to consider when thinking about improving or re-developing your website