Being prepared to engage with tax authorities on transfer pricing

Transfer pricing remains a top priority for tax authorities around the world.

Transfer pricing audits are commonplace, but many tax authorities are also keen to promote proactive engagement with taxpayers through the Mutual Agreement Procedure (MAP) or an Advance Pricing Agreement (APA). Many tax authorities also have access to an increasing range and sophistication of tools to conduct transfer pricing risk assessments and target transfer pricing audits, helping those tax authorities to generate significant additional tax yields through the audits they undertake.

Strong tax and transfer pricing governance, up to date and well-evidenced policies and documentation, and robust operational procedures will underpin successful engagement for taxpayers by providing support for their position and shortening the time to resolution of an audit.

Well-prepared taxpayers will have the best opportunity to successfully engage with interested tax authorities – but what exactly does it mean to be well-prepared? That is the important question that experts from across our global transfer pricing network explored in this workshop.