The Penalty Protection regime
As professionals with certified knowledge in transfer pricing (TP), we can help you to plan and to price any inter-company transaction flow in compliance with domestic and conventional law giving you guidance over the most reliable pricing method for any intra-group transaction and "cost contribution agreement" (CCA).
All our services are performed according to the current trend of international jurisprudence.
Our main goal is to ensure that Tax Authorities will not engage in any action which is detrimental to our clients by making adjustments to the price applied to transactions between connected parties.
Functional analysis
We perform the functional analysis required by current law for the determination of the amount of free capital which for tax purposes must be attributed to permanent establishments (PEs). We assess the risk assumed by the PE by analyzing in deep the key-entrepreneurial functions performed allocating the arm's length amount of assets needed to bear those very risks. Our functional analysis is made by strictly observing the OECD accepted approach (AOA ) and the commentary of the Organisation on the model tax convention (MTC).
Comparability analysis
In order to determine the arm's length price of controlled transactions between your connected parties we perform a comparable analysis by mean of the best research tools and the widest comparability databases available on the market.
We access the most comprehensive royalty rate database for intangible assets like IP (intellectual property), patents and trademarks. Our tools are approved by the IBFD (International Bureau of Fiscal Documentation) therefore their data are generally regarded as reliable by financial authorities.
Benchmarking studies
Thanks to benchmark analysis it will be possible to set a profit margin to be applied to transactions at arm's length between connected parties which is acceptable to Tax Authorities. They represent an important part of transfer pricing analysis as Tax Authorities may require evidence of the process used to price transactions between connected parties.
Their scope is to determine the economically relevant characteristics of the transactions between independent parties in order to set an acceptable range of values controlled transactions could be priced at.
Transfer pricing
reporting
Master File
Local File
Country-by-country reporting
TTC (only if your group operates in Australia)
We help our customer in writing the TP reports included the new Country-by-country report in particular to the attached notes and commentary about the pricing methodology used, the structure chosen for the MNE (multinational enterprise) group and the economic substance of each group member.
Advance Pricing Agreements
(APA)
and tax rulings
We provide all the documentation to be submitted to tax authorities in order to obtain the most favourable agreement for transaction with connected parties which are within the scope of transfer pricing rules. We can engage directly with local authorities in order to obtain for you tax clearance and tax rulings (where applicable) for any arrangement or company structuring which could be in a “grey zone” for tax compliance purposes.
Internal
tax audit
and compliance
We perform independent tax auditing for transfer pricing compliance purposes.
We can produce commentaries for any controlled transaction explaining the methodology used to determine that.