Economic consulting

Given the very nature of transfer pricing, assessing and designing arm's length pricing policies requires detailed economic analysis of the inter-company transactions involved. This can take various forms:

• performing benchmarking analyses of relevant third-party data using a range of commercial and proprietary databases
• valuing tangible and intangible asset transfers between related parties
• determining arm's length royalty and licence fees
• developing financial models and simulations in the context of business realignments
• performing implementation reviews of inter-company arrangements
• assisting groups in determining arm's length interest rates for inter-company financing arrangements (e.g. via determination of shadow ratings).

PwC has the resources and expertise to address these economic issues so that any given transfer pricing policy also withstands the test of economic reality.