Whilst it may appear unusual to include transfer pricing within the corporate finance section of our website we find that valuation and transfer pricing skills are complimentary.
Transfer pricing is a tax concept and relates to the price at which goods and services pass from one company to another within a group. HM Revenue & Customs (HMRC) require that where a transaction between connected parties is not at arm's length, (the equivalent price that would have been charged between independent parties in the same circumstances) an adjustment has to be made for tax purposes. Generally HMRC are looking at multinational groups but the rules can also apply to transactions between UK companies under common control.
We are experienced in preparing transfer pricing reports in accordance with the Organisation for Economic Co-operation and Development (OECD) guidance and negotiating with HMRC. We aim to produce a concise report and try to avoid the “copy and paste” approach. Where we need to refer to profitability data for comparable, independent companies we prefer to review the published accounts of such companies rather than rely on the information provided by large databases. We believe that this results in a more robust analysis.
For expert advice on transfer pricing, contact one of our team to see how we can assist you.