Transfer Pricing Audit
A transfer pricing audit is a specialized tax examination conducted by a government authority to ensure that transactions between related parties (companies under the same ownership or control) are priced at arm’s length. In other words, the audit aims to verify if the prices charged between these entities are similar to what unrelated parties would agree on in an open market transaction.
This is crucial because the pricing of intercompany transactions can significantly impact the taxable income of companies in different jurisdictions. If a company is found to be undercharging its affiliates, it may be subject to tax adjustments in the low-tax jurisdiction.
Why are Transfer Pricing Audits important?
Transfer pricing audits are becoming increasingly common as governments strive to protect their tax base and ensure fair competition. Companies with significant cross-border transactions are particularly susceptible to such audits.
How can SAKH & Associates help you with a Transfer Pricing Audit?
At SAKH & Associates , we understand the complexities of transfer pricing and the challenges associated with audits. We offer a comprehensive range of services to help our clients navigate this process:
- Preparation:We help you develop and document your transfer pricing policies ensuring they are compliant with relevant regulations and aligned with the arm’s length principle.
- Defense:We provide expert representation during the audit process, working closely with you and the tax authorities to address their concerns and minimize potential tax liabilities.
- Negotiation:We strive to negotiate favorable settlements on your behalf, mitigating the financial impact of any adjustments arising from the audit.
- Post-audit support:We offer ongoing guidance to ensure your transfer pricing practices remain compliant and mitigate the risk of future audits.
Benefits of choosing SAKH & Associates :
- Deep expertise:Our team comprises experienced transfer pricing professionals with a proven track record of success in complex audits.
- Proactive approach:We identify potential issues early and work with you to implement preventive measures to minimize audit risks.
- Client-centric service:We provide personalized attention and regular communication throughout the audit process, ensuring you are fully informed and involved.
