Why is an operational transfer pricing review important now?

In the current business landscape, tax authorities around the world are taking a closer look at transfer pricing and cracking down on companies that make unsupportable transfer pricing decisions to shift profits and avoid taxes. Taxpayers are expected to show that they have adequate processes and controls in place to ensure transfer pricing outcomes match expectations. Many multinational organizations struggle with establishing contemporaneous procedures for intercompany pricing, resulting in manual, reactive tax processes. Transitioning strategies into an operational model is complex and time-consuming, leading to disconnected tax processes.

Without proactive controls, global tax implications are often overlooked, risking disputes, double taxation and inaccurate filings. As tax authorities become more sophisticated, maintaining organized systems for transfer pricing information is crucial. Operational transfer pricing (OTP) resolves these issues, empowering organizations to develop modern transfer pricing policies that align with evolving tax demands.

What outcomes can you expect from an OTP review?

How RSM’s OTP review can help your organization

RSM US LLP can help you utilize existing technologies and data infrastructure to create efficient operating models addressing the increasingly complex global tax issues.

If you answer yes to any of the questions below, engaging RSM for an OTP assessment may strengthen your organization’s tax position:

  • Are you looking for a clearly defined and documented policy to clarify and support the pricing of your intercompany transactions?
  • Would you want to have roles and responsibilities clearly documented and understood across your tax, finance and commercial business?
  • Do you want to configure your accounting systems to reflect intercompany transactions in accordance with the transfer pricing policy?
  • Does data extraction require a large amount of manual interventions?
  • Have there been any significant organizational changes (e.g., new enterprise resource planning, finance transformation, mergers and acquisitions, restructuring)?

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