Transfer Pricing for Surviving the Economic Downturn

Madrid, Spain
12 July 2010
Hosted By: NERA Economic Consulting

The economic crisis that began in 2007 and continues to affect the major world economies requires a reevaluation of the classification of the routine/functional versus non-routine/entrepreneurial activities originally assigned to the entities of a multinational group when valuing related transactions. The methods traditionally used to determine the arm's length prices/margins have to be revisited to take into account the adverse impact that the drop in global demand has had on the financial results of multinational groups.

NERA's Transfer Pricing Practice hosted a lunch session in our Madrid office to address how the economic recession affects traditional transfer pricing analysis. NERA Special Consultant Pim Fris and Director Dr. Emmanuel Llinares presented "Transfer Pricing for Surviving the Economic Downturn," in which they discussed the different methods that can be used to mitigate the impact of the crisis on the results of multinational groups when performing comparability and benchmarking studies.

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