Compliance » Covid Brings Transfer Pricing Issues

Covid Brings Transfer Pricing Issues

reach plea outward need

This article summarizes the essential role of inter-company agreements in transfer pricing compliance. Transfer pricing relates to the charges made between associated entities, such as companies within a group. Tax authorities may challenge the amounts of those charges, giving rise to a risk of double or multiple taxation of the same profits. The disruption caused by the Coronavirus pandemic has complicated transfer pricing issues for many companies, and this article includes a guide to scrutinizing and possibly revising inter-company agreements. A key concept is the “arm’s length principle,” which requires transfer prices to be determined based on conditions that would be made between independent or unrelated enterprises. “Intragroup agreements,” says the writer, “need to be considered from a holistic perspective- including considerations of regulatory compliance, VAT, customs duties, intellectual property licensing, and other asset protection – in addition to governance and transfer pricing. In-house legal functions have a vital role to play in managing these issues.”


Read full article at:

Get our free daily newsletter

Subscribe for the latest news and business legal developments.

Read this next

Top 100 Litigator Sues Blue Cross Over His Cancer Treatment

In 2018, Robert Salim, 67, realized he was seriously ill. After numerous […]

Eight States Now Require Pay Transparency in Job Postings

Financial Industry Suing to Foil New Regulations

New rules aimed at lenders, investment funds, and other financial entities would […]

Regulatory Burden Factors Into AI Decision

GC Must Warn Boards Of AI Risks

There are companies investing hundreds of millions of dollars or more into […]

Scroll to Top