With exponential advances in technology, transportation and communication over the past few decades, many multinational companies (MNCs) have had the ability to place their enterprises, and conduct their activities, anywhere in the world. When an MNC engages in the practice of cross-border intercompany transactions, there are a variety of direct and indirect implications, including the effects of those transactions on tax rates, shareholder wealth, governmental tax revenue, corporate after-tax cash flow and more.
In the wake of the recent global recession, governments everywhere seek to maintain or boost their tax bases. Therefore, intercompany transactions – and their tax implications to the governments in which subsidiaries reside – remain solidly in the crosshairs of government officials across the globe.
Transfer pricing is one of the top audit issues for the IRS and other revenue-strapped tax authorities. Additionally, transfer pricing can significantly impact shareholder wealth, owing to its influence on how taxable income gets distributed among countries with different tax rates.
This e-book presents important information about transfer pricing for tax professionals and corporate leaders at MNCs, as well as those who seek to take their enterprises global. Information is organized as follows:
- Chapter 1: Transfer Pricing Basics
- Chapter 2: An Explanation of Profit Shifting, and the Base Erosion and the Profit Shifting (BEPS) Initiative
- Chapter 3: An Explanation of Country-by-Country (CbC) Reporting
- Chapter 4: U.S. Requirements Under BEPS
- Chapter 5: Transfer Pricing – Key Takeaways
- Chapter 6: What to Look For in a Transfer Pricing Service Provider