Transfer Pricing Health Check

Transfer pricing is a term used to describe inter-company pricing arrangements relating to transactions between related business entities. These can include transfers of intellectual property, tangible goods, services, and loans or other financing transactions.

Tax authorities around the world have become more aggressive in the transfer pricing arena, introducing stricter penalties, new documentation requirements, increased information exchange, improved audit staff training and increased audit and inspection activity and specialisation. This intense scrutiny implies significant risks for the unwary and the unprepared, particularly in a complex field such as transfer pricing where each transaction must be analysed under its own unique facts and circumstances.

PwC will assist our clients to review related party transactions with a view to evaluating the risks associated with the level of documentation within the company and the pricing basis between the related parties. Based on this, the company will be in a better position to size up their transfer pricing risks and prioritise the actions required.