The global pandemic not only disrupted and further complicated the never simple world of transfer pricing but has also put increasing pressure on government finances. Charged with raising revenue, Tax Authorities are challenging intercompany transactions more than ever. With this, multinational companies are expected to face increasing compliance and audit pressure on both. Given that transfer pricing is still one of the highest risk areas, this poses big challenges for the tax department and its transfer pricing team – how do you know if your processes governing transfer pricing will withstand audit scrutiny?
Hear from three of KPMG UK’s transfer pricing experts who discuss how multinational companies can be better prepared for transfer pricing audits, different types of approaches tax authorities might take, how companies can approach the benchmarking and the documentation to address this, and what to do if you entered into an APA.