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+1 747 212 0206
+44 20 3286 8868
+86 21 2052 0623Preparing for Transfer Pricing audits
People contact us for many reasons. A common one is that they want to be prepared if a tax authority requests a transfer pricing audit. Another is that the group has already been told that an audit will take place.
A transfer pricing audit can be significant challenge for a multinational group. Tax authorities will expect accurate and effective documentation to be produced quickly – and if a group is unable to do that then the consequences can be serious.
Whether we are preparing in advance or responding to an audit that has already been notified, the process is fundamentally the same. We examine the documentation that is already in place and establish whether or not it is fit for purpose. Are there any gaps, or issues with coverage or non-alignment? If we identify problems, we deal with them quickly and thoroughly. As a result the group is, as far as possible, able to present a clear, complete and accurate picture to the tax authorities.
The biggest difference between the two situations is that if the group is responding to an existing audit, the work is more pressured. We are used to that, and can deal with it easily. We would always recommend, however, that groups take a pro-active and precautionary approach.
