What is interim management of transfer pricing?
Despite strongly rising awareness regarding transfer pricing aspects, tax managers are not always aware of the latest developments and are uncertain how they should meet their compliance requirements as they frequently do not have enough internal resources.
This is even more valid for the times of the year with high work load, for example before end of the financial reporting year and / or end of period of submitting the tax statements.
As a result, in most of the cases, tax managers choose to work with external consultants on a project basis and on specific issues.
Nevertheless, this classic approach is not always adequate as the tax manager may not always have enough time to keep track of all the changes in the local regulations. Moreover, in this classic approach, the consultants might not seek beyond the scope of their contractual arrangement.
Therefore, a much better approach is to have a dedicated specialist in-house either on a full-time basis or on a part-time basis.
However, having regard that even external transfer pricing consultancy firms often experience difficulties finding staff with proper transfer pricing knowledge, it is not always possible to find an in-house specialist.
In these situations, another alternative is to contract a specialized firm that will handle the transfer pricing function exactly in the same manner an in-house employee would handle by being on premises either on a full-time basis or a part-time basis or even on a determined period basis.
How we can help?
We offer our clients the possibility to hire us as in-house interim transfer pricing consultants.
Our in-depth knowledge of the latest transfer pricing regulations and our extensive experience allow us to provide effective interim services for transfer pricing function of any company in a cost-effective way.
Apart of taking full responsibility of the transfer pricing function for a single company, we can also take the responsibility for managing the transfer pricing function at the level of the entire group worldwide.
Among the types of activities that we perform in situations we are appointed in interim management assignments, we perform:
- management of transfer pricing documentation projects: local and international approaches;
- creation of procedures to be applied by each company when performing an intra-group transaction;
- co-ordination and handling of national and international transfer pricing questions of every nature;
- efficient implementation and operational realisation of transfer pricing processes, guidelines as well as conversion of models;
- coordination with foreign group companies and external transfer pricing advisers;
- support during transfer pricing audits;
- delegation of a team member at the headquarters of your company in order to comprehensively communicate and to collaborate with your company employees, so that an efficient conclusion can be reached quickly and at a tolerable risk level.
How do we do it?
How the cost allocation invoice between related companies should look like in order to be accepted by the tax authorities? What types of back-up documents should be available in the company records? Does a “profit mark-up” have to be added to a received / rendered intra-group service? If yes, how high does this have to be in order to fit consistently into the transfer pricing system of the company?
The above questions are regular questions that we can answer during our transfer pricing management interim assignments and for which we can take responsibility.
We can agree on sending one of our colleagues at your headquarters on a daily basis or a few days in a month and answer these questions in person, or we can arrange to have a direct line with us so you can take fast and accurate decisions.
During the time we are appointed as interim managers of your transfer pricing function we communicate constantly with the CFO or CEO to keep them always aware of what is going on in the company from a transfer pricing perspective so that they can take decisions where needed.
Through our partnerships across the European Union you will have the assurance that any advice that we will give you will also be validated by one local consultant.
- ATIPIC Solutions attended the Tax & Finance Forum 2019 May 30, 2019
- DAC 6 – New EU tax mandatory disclosure rules with regard to cross – border transactions May 13, 2019
- Countries in the European Union that accept the transfer pricing documentation in English language April 12, 2019
- Country by Country Reporting in European Union November 22, 2018
- The role of the financial manager in preparation of the transfer pricing documentation October 12, 2018