Business is global - Tax is local
The global economy has opened up international markets to all businesses; telecommunications, the internet and ease of trading across borders has made it simple for businesses of all sizes to offer their products and services in many markets around the world. In addition, outsourcing of business processes and access to lower labour cost markets have increased the volume and variety of business transactions across borders.
This increased globalization brings many complexities that require adept navigation and management by business owners. Today, international business is no longer the exclusive realm of Fortune 500 companies that have extensive resources to deal with these complex issues.
As globalization becomes easier, tax authorities have become increasingly concerned with protecting their tax revenue base. In the last decade, many countries have instituted rules that attempt to regulate the pricing of goods and services exchanged between members of a multinational group (“transfer pricing”) in order to prevent an unfair allocation of profits for tax motivated purposes.
Transfer pricing requirements cannot be ignored considering the intricacy of international business, aggressive auditing by tax authorities and the magnitude of financial repercussions including double taxation. Barring compliance obligations, companies have found that transfer pricing can be regarded as an opportunity to structure international operations in a tax-efficient manner. Beyond minimizing tax exposures, it can provide useful insight into the business, increase operational efficiency and optimize global tax liabilities.
Richter’s international tax professionals understand your business, industry, processes and value drivers. Going beyond providing analysis, drafting reports and making recommendations, we take a practical, proactive and hands-on approach to help you develop and implement an appropriate strategy to ensure compliance, create business value and minimize transfer pricing risks.
Plans take into account business operations, as well as tax implications, to any international structuring. Our team draws on its understanding of your business model to identify the most suitable transfer pricing policy and help implement these recommendations.
Our experience among diverse industries and countries provides the tools necessary to help you navigate through complex transfer pricing requirements. Compliance does not end with an analysis. We will assist you in monitoring and adjusting your transfer pricing policy on an ongoing basis.
Richter’s professionals have extensive experience in providing transfer pricing audit support. Successfully defending your company’s transfer pricing policy starts with sufficient and appropriate documentation. With the increasingly aggressive approach towards transfer pricing audits, our experience has given us valuable insight into the issues that revenue authorities pay particular attention to and their interpretation on various transfer pricing issues.