Legal and transfer pricing professionals often overlook intercompany agreements, which can lead to significant fines and disputes. In this episode, Paul Sutton highlights the importance of a proactive, cross-functional approach to managing these agreements to protect your business and enhance compliance.
You’ll learn that managing intercompany transactions goes beyond documentation; it involves planning, real-time monitoring, and defending your position during audits. Paul shares practical steps for identifying when agreements need urgent review due to new transactions, structural changes, or documentation gaps. Legally aligned agreements tied to actual operations can help build a defence against penalties and reputational risks.
Key takeaways include:
- The role of legal considerations in transfer pricing
- How to assess gaps in intercompany agreements
- The importance of a legally sound operating model for compliance
- Strategies to engage legal teams effectively
- Frameworks to keep your organisation audit-ready
Ignoring these issues can result in costly tax penalties and compliance risks, but with the right approach, these risks can be mitigated. This episode offers essential insights for tax, legal, and compliance teams to build robust intercompany transaction frameworks.