Transfer Pricing
Put simply, transfer pricing is the number one
international tax area that multinationals are concerned about. The
UK's corporation tax self assessment regime in respect of transfer
pricing puts the onus on the taxpayer to verify ''arm's length''
prices on all related-party transactions. In addition, the taxpayer
must fully document how the arm's length prices have been arrived
at. In 2004, challenges under EC law prompted a change in UK
legislation so that UK to UK intra-group transactions must also be
on arm's length terms. Interest and penalties are imposed for
non-compliance – so there could be serious financial implications
if a company does not take its transfer pricing obligations
seriously.
Grant Thornton's team includes experienced
transfer pricing specialists and economists. We can provide
assistance with the preparation and maintenance of advance pricing
agreements and transfer pricing documentation or review internal
documentation to ensure that it is compliant. Through benchmarking
studies against UK and international companies we can help you
ensure that the inter-group prices charged are in accordance with
the arm's length principle.
For further information please contact Danny
Beeton on +44 (0)20 728 2399 or email danny.j.beeton@gtuk.com.