I’ve posted some things previously about the increasing scrutiny taxing authorities are placing on transfer pricing methods used by companies.  Given that countries worldwide are hungry for tax revenue, this is likely to remain a big area of concern for companies as they seek to minimize taxes while satisfying legal requirements in each jurisdiction where they have operations.

Transfer pricing, the process by which multinational companies set arm’s-length prices for cross-border transactions within a corporate group, is complex and consistently ranks as the No. 1 international tax issue facing multinational companies, according to Ernst & Young’s 2009 Global transfer pricing survey. To avoid penalties and potential interest, most tax authorities require taxpayers to prepare annual transfer pricing reports when they file tax returns.

The Journal of Accountancy has a short piece online that looks at the different areas of expertise that are required when calculating and managing transfer pricing and tax obligations.

CPAs Provide Expertise for Transfer Pricing Analyses. Steve Snyder, CPA/CFF, CVA. Journal Of Accountancy (Online). May 2010

CPAs Provide Expertise for Transfer Pricing Analyses.