Implementing Transfer Pricing into Everyday Operations
September 30, 2022
Transfer pricing is the intercompany pricing of goods and services that one company charges another when both are under common ownership or control. Countries around the world pay attention to transfer pricing as these intercompany charges can shift income or deductions from one tax jurisdiction to another. When it comes to implementing transfer pricing policies within a company, front-end planning and back-end tax compliance often receive the most attention.
However, the latest Tax Beat Podcast walks through the importance of melding transfer pricing into company operations, which can bring value to current operations, meet the goals established in planning, and ease the documentation requirements of annual income tax filings.
Brooks Nelson and Sarah McGregor talk with Kirk Hesser, leader of Cherry Bekaert’s Transfer Pricing Analysis and Consulting group, about the shift in focus to operational transfer pricing. The conversation with Kirk also covers the impact of economic downturns and supply chain stress on transfer pricing, and the need for flexibility in company pricing documents.