Transfer pricing can be a significant issue for multinational groups that conduct business across international boundaries. Most countries now have detailed rules in place to govern transactions between connected parties to prevent, for example, profits being moved from a high tax country to a low tax country.
In the UK, legislation requires cross-border trading and financial transactions between affiliated businesses to be conducted according to the arm’s length standard, in the same way as if the transactions were between completely independent parties.
Despite the impact that a poorly understood or badly thought out transfer pricing policy can have on carefully arranged international corporate structures, in many cases transfer pricing is an afterthought.
Our international tax team at Milsted Langdon is able to advise on transfer pricing issues for UK companies and UK subsidiaries of overseas firms, drawing on the expertise of fellow MGI Worldwide member firms in more than 80 other territories around the world, to help protect challenges from the tax authorities and give corporate groups certainty over their internal prices and costing arrangements.
Our services include:
- assessing corporate obligations under different transfer pricing regimes
- advising on transfer pricing compliance for multiple jurisdictions
- reviewing or preparing documentation to support transfer pricing policies
- advising where tax authorities challenge transfer pricing policies.