According to a recent survey, tax executives have a growing concern over one thing - global transfer pricing. It ranked second in potential corporate tax risk, only behind U.S. tax legislation and regulation changes.
Josh Finfrock, Senior Manager in the Memphis office and transfer pricing expert, analyzes the results of the global survey and shares his insight on transfer pricing risks:
Since the economic downturn, tax authorities from both developed and developing economies are gaining sophistication as transfer pricing has become one of their highest priority issues in the prevention of tax base erosion. Tax executives are increasingly balancing global transfer pricing risk in an environment where tax authorities worldwide have shifted from not only viewing transfer pricing as a tax base erosion prevention issue, but also utilizing transfer pricing as an active tool to increase tax revenue. With the economics of government under ever increasing pressure, tax executives are forced to carefully assess and mitigate the global risk of double taxation resulting from aggressive transfer pricing adjustments.
The survey conducted included participants from 20 countries with over 300 senior tax executives from large public and private companies. You can read the full story on Accounting Today's website.