Synopses & Reviews
Transfer pricing is often identified as the most important tax issue that multinational corporations face. This publication is an extremely useful tool for practitioners and tax directors grappling with complex and contentious transfer pricing issues of various kinds. It contains a series of highly detailed case studies, which draw on the author's two decades as a government economist specializing in transfer pricing and valuation, a transfer pricing economist with Price Waterhouse, and, lastly, an independent consultant. These case studies elucidate the types of intercompany transactions that tax authorities often scrutinize, lay out how one should go about analyzing such transactions under the existing regulatory regime in considerable detail, and illustrate a number of proposed alternative approaches that could substantially reduce compliance costs and the frequency of transfer pricing disputes. Practitioners and tax directors will find the case studies extremely helpful in formulating defensible transfer pricing policies. The case studies may also be useful in assessing tax exposure attributable to intercompany pricing practices, as required under FASB Interpretation No. 48 (FIN 48). Tax policy analysts will find the evaluation and critique of existing methods and the development of alternative proposals thought-provoking and compelling. The book is divided into three parts: Part I contains a detailed review and critique of individual transfer pricing methods and the economic premises that underpin them. Part II contains a discussion of proposed alternative transfer pricing methods. Part III contains the aforementioned series of eight case studies, encompassing a broad range of transfer pricing issues. Global trading and certain types of Internet-based businesses, which the current transfer pricing regime does not adequately address, are among the issues covered. Each case study is analyzed under both the existing transfer pricing regime and one or more proposed methods.
Review
From the reviews: "The book of Elizabeth King is written for the benefit of tax practitioners. The focus is on the various transfer pricing cases. The case studies reflect in particular the US views as for example the FIN 48 specifications. We recommend this book to tax advisors and inhouse tax specialists handling transfer pricing aspects in particular related to the US." (Steuern-buecher, September, 2012)
Synopsis
This publication will be a useful tool for practitioners and tax directors grappling with the complex and contentious issue of transfer pricing. It contains a series of highly detailed case studies, based on the author's twenty-one years as a government economist specializing in transfer pricing and valuation, a transfer pricing economist with Price Waterhouse, and, lastly, an independent consultant. These case studies elucidate the types of intercompany transactions that may be scrutinized by tax authorities, lay out how one should go about analyzing these transactions in painstaking detail, and suggest how one might assess tax exposure relating to transfer pricing. Tax policy analysts will find the evaluation and critique of existing methods and the development of alternative proposals thought-provoking and compelling. The book is split into two parts: The first part describes and critically analyses the transfer pricing methods and regulations currently in place and proposes alternative approaches. The second part consists of ten case studies.
Synopsis
This handbook will guide practitioners and tax directors through the complex maze of transfer pricing. It describes current transfer pricing methods and regulations, proposes alternative approaches, and discusses ten case studies in elaborate detail.
Table of Contents
Introduction.- Economic vs. Accounting Profit Rates and Implications.- The Comparable Profits and Transactional Net Margin Method.- Resale Price and Cost Plus Methods.- Comparable Uncontrolled Price Method.- Services Cost Method.- Profit Split Methods.- Cost-Sharing.- Proposed Alternative Approaches to Transfer Pricing.- Case Study1.- Case Study 2.- Case Study 3.- Case Study 4.- Case Study 5.- Case Study 6.- Case Study 7.- Case Study 8.- Case Study 9.- Case Study 10.- Conclusions.