By Gianluca Queiroli, Director, Advisory Services, High Street Partners
If you have a company that operates internationally, you are likely familiar with the concept of transfer pricing. With multinational companies working in countries with different tax laws and rates, transfer pricing is used to determine proper allocation of income within the supply chain for tax purposes, matching income with functions, risks and exploitation of intangible property. Simply put, it’s a strategy that gets the right income in the right place, so you can be taxed on it correctly.
Last week’s webinar Why Transfer Pricing Matters: Avoiding Common Pitfalls encouraged a lot of discussion. There were several interesting questions from attendees for HSP's transfer pricing expert Justin Smith and DLA Piper's Ray Brown; here are some of the highlights, and answers: