Although transfer pricing (TP) has emerged as an effective way for multinational enterprises (MNEs) to manage international tax liabilities, tax authorities around the world are taking a harder line on the issue. Audits are more sophisticated and penalties are rising. That’s among the conclusions of a recent Ernst & Young study. The research shows that [...]
The economic slowdown has triggered heightened transfer pricing enforcement around the world and greater compliance demands. Long a focus of the IRS, transfer pricing is now garnering more attention and is the subject of increased scrutiny in even previously tax-friendly countries, like China and India, reports CFO.com. As a result, U.S.-based multinational corporations are facing [...]
The world of tax is changing. Now more than ever, effective global tax strategies are essential for high net worth individuals (HNWIs) as well as multinational corporations. A recent study released by the Society of Trust and Estate Planners (STEP) finds that tax competition between all countries is heating up. Meanwhile, industry experts say it [...]
Multinational corporations have found that revenue agents around the world are scrutinizing intercompany transactions. The Canadian Revenue Agency (CRA) and the IRS, in particular, have increased their emphasis on transfer pricing audits. Experts also say there is mounting evidence that Canada’s relationships with revenue authorities of other countries, including the U.S., are currently strained due [...]
U.S. and Australian officials have agreed to work together to combat tax evasion, fraud and tax havens ahead of the G20 summit to be held in Pittsburgh in September, according to the AAP. The report states that Australian Assistant Treasurer Nick Sherry recently met with key U.S. tax officials and legislators in Washington. Following his [...]
Strategic dispute resolution has become critical for companies to sustain their global transfer pricing strategies. Now, PricewaterhouseCoopers (PwC) announced its International Transfer Pricing 2009 book which predicts an increase in disputes around the world as more and more tax authorities aggressively attempt to enforce their transfer pricing rules. “In 2009 we expect that several major [...]
Transfer pricing - complex arrangements companies use to allocate costs and revenue between operations in different tax jurisdictions - has steadily become one of the top concerns of the IRS. The agency was recently handed a victory in a dispute with Xilinx that could have far reaching implications for other multinational companies that use transfer [...]
Drug giant, GlaxoSmithKline, is battling the IRS over a potential $1.9 billion in back taxes, interest and penalties, according to Reuters. The case centers on a tax-savings technique used by the company known as “earnings stripping.” The practice involves reducing domestic taxable profits by claiming excessive interest deductions on intercompany loans from units abroad. Reuters [...]
President Barack Obama recently sent the corporate tax community reeling with a radical set of plans to change the U.S. tax code. Obama’s aim is to shrink a “tax gap” the IRS estimates may be as high as $345 billion by restricting or closing several widely used tax loopholes. One routinely used tactic not tackled [...]
President Obama has plans to shrink a “tax gap” the IRS estimates may be as high as $345 billion. Obama proposed Monday to raise taxes on the overseas profits of U.S. companies and to go after evaders who abuse offshore tax shelters, according to the AP. The report states that under his plan, companies would [...]
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