Risk and Regulatory

Bring the future into focus and move ahead of uncertainty

Feature - 4 items

Case study: Preparing for a world of change – Microsoft’s forward-looking approach to transfer pricing (TP) execution and monitoring

Industry: Technology, Media and Telecommunications

Services: FinanceRisk and RegulatoryTransfer Pricing

Solutions: Finance TransformationSAP

Challenge

Was achieving a global view of intercompany execution in sight?

It was time for a change. Not because things were at a stand-still, but precisely because they were already in motion. Navigating an increasingly complex and highly scrutinized regulatory environment, while undergoing a business model transformation, created significant challenges for Microsoft’s intercompany execution.

The particular challenge the client faced — a common one — was that while corporate tax liability is driven by statutory legal entity results, the design of the systems and surrounding processes was geared towards a consolidated/managerial view. In July 2014 Microsoft’s earnings release included the following statement: “Tax provision adjustment of $458 million, or a $(0.05) per share impact, in the fourth quarter of fiscal 2014 related to adjustments to prior years’ liabilities for intercompany transfer pricing that increased taxable income in more highly taxed jurisdictions (“Adjustment to Prior Years’ Taxes”)”.

Read more

Additional insights

{{filterContent.facetedTitle}}

PwC's Risk and Regulatory team

Lindsey Bristow

ITS Operations Leader, Chicago, PwC US

Email

Jason Pett

Risk Assurance Leader, PwC United States, PwC US

Email

Dietmar Serbee

Navigating Risk & Regulatory Compliance Leader, New York, PwC US

Email

Let us be part of
your success story

We’re ready to help you take on today’s most pressing business challenges. Reach out and start a conversation today.

Contact us

Ken Kuykendall

Services & National Tax Services Leader, PwC US

David Sapin

PwC Risk & Regulatory Leader, PwC US

Jason Pett

Risk Assurance Leader, PwC US

Follow us