Ernst & Young has released its 2012 global transfer pricing tax authority survey: perspectives, interpretations and regulatory change. The survey reviews transfer pricing practices and attitudes in 48 jurisdictions with respect to a variety of topics, including penalties, transactions and industries of focus, dispute resolution options, and approaches to comparables benchmarking.
Ernst & Young says it is very clear that transfer pricing will continue to be “front of mind” for both tax authorities and multinationals. It said that tracking trends and obtaining timely information on the transfer pricing environment will be critical to effective management of a tax function. Key messages from the survey included the growing documentation burden, the risk of penalties, relief from double taxation, and the importance of Advance Pricing Agreements.
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