Increased compliance requirements
With the introduction of BEPS, tax and transfer pricing, managers face increased compliance requirements where it is crucial that data related to transactions, transacting parties, volumes and prices is accurate, complete and consistent throughout e.g. the transfer pricing documentation, country-by-country reporting, tax returns and the annual report. Trend shows that data analytics constitutes an increasing part of the audits performed by the tax authorities. Inconsistencies between the various compliance documents will increase the risk of income adjustments.
With Tax Intelligence Solution, we are able to assist in analysing and interpreting your data with high granularity, spanning from the level of individual transactions to product groups to entity level. This can be valuable in order to understand the group's tax risk profile and identify the potential optimisation opportunities. At a glimpse, our analyses contain:
- Overview of actual transactions vs. expected transactions (i.e. does surprising or disallowed transactions occur?)
- Real-time margin analysis from entity level to transactional level enabling you to diminish year-end adjustments (i.e. should prices be adjusted within the year in order to align with the target margins?)
Analysing root causes of wrong prices and margins (i.e. are the defined transfer pricing policies adhered to?).
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Henrik Lund
Partner, Transfer Pricing
KPMG ACOR TAX