One way to avoid or minimize the penalties that are imposed by tax bodies is to follow the arm’s length principle and prepare accurate transfer pricing documentation
The scope of the services offered by our tax advisors and business consultants covers assistance in both developing a transfer pricing policy and preparing tax documents as well as fulfilling the reporting duties. We prepare local files, benchmark analyses, compliance analyses as well as master files. We provide tax documentation so that they are optimum and safe in terms of business and taxes.
Adverse consequences of disclosing any incorrectness in this area may be disastrous to a taxpayer. The tax bodies have the right to independently assess the amount of tax revenues (or costs) when the prices applied to trade with related entities do not correspond to the market prices and, thus, the income is “transferred” in full or in part to other countries or entities.