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Transfer Pricing Commands Careful Risk Strategy

Tammy Whitehouse | October 29, 2008

Transfer pricing is getting a great deal more attention globally, as governments around the world have become increasingly savvy to multinational corporate transactions and the ways they’ve been worked to avoid paying taxes.

KPMG has published a veritable bible on the global transfer pricing landscape, titled “A Meeting of Minds,” offering perspective from 19 KPMG member firms from various countries to help companies plan their own risk-management strategies. Nearly 40 KPMG transfer pricing experts authored the package to cover everything from advance pricing agreements to defending an audit in China.

Transfer pricing focuses on how companies price their cross-border, inter-company transactions. Tax authorities increasingly scrutinize those transactions to assure they’re priced, and therefore taxed, like arm’s-length transactions. It has become increasingly important to large...

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