GCs concerned over transfer pricing tax charges

Just over two-thirds (67%) of in-house tax specialists and lawyers are ‘somewhat or very concerned’ about tax adjustments which they expect to follow from the implementation of OECD guidance on transfer pricing.

This is one of the conclusions of ‘Transfer Pricing: Intangible Property, Tangible Profits’, a report from ALM Legal Intelligence and Edgeworth Economics.  The tax departments of law firms are playing an important role in this story as, according to the report’s authors, ‘the identification and documentation of intangible assets, such as patents, trademarks and business methods for transfer pricing purposes, is becoming an increasingly significant focus of law firms representing tax clients’.

Latitude

The report suggests that 66% of law firms are working with some of their clients on identifying and documenting intangible assets. Transfer pricing between one tax jurisdiction and another has represented a way for corporates to keep their tax rates down – as the companies have had a lot of latitude on deciding how to value the transactions, goods and assets that are transferred. Source: GlobeNewsWire