Areas of Risk
Other areas of risk that need to be mitigated during a transfer pricing analysis include, but are not limited to:
- Hefty local tax reassessments with significant penalties and interest on overdue tax
- Double taxation where income has already been taxed elsewhere and relief under bi-lateral income tax treaties are not available
- Secondary tax consequences, such as carry-forward of unfavorable revenue determinations creating additional future liabilities
- Uncertainty as to your worldwide tax responsibilities leading to the risk of financial statement earnings restatements and possible lawsuits from investors and underwriters
- Damage to a company’s business reputation and brand if it’s seen as an unethical corporate citizen
At PM Business Advisors we have expertise in transfer pricing and can utilize our knowledge as an opportunity to optimize profits, increase cash flows, and mitigate taxes while adhering to localized requirements on a country by country basis.
The PM Business Advisors team will work with you to develop transfer pricing policies that are defensible, flexible, and in-line with your company’s overall strategic tax plan and objectives so that you can focus on other operational business goals.