Transfer Pricing

Transfer Pricing Documentation

Transfer Pricing Documentation

NERA's approach to transfer pricing documentation aims to combine compliance-oriented and policy-guiding approaches by developing intercompany pricing policies grounded in sound business strategy and well-established economic principles. Our thorough analysis of the industry structure and its value chain combined with rigorous analytical methodologies and clear presentation of the results allow us to develop transfer pricing solutions that meet both our clients’ business objectives and the arm’s length requirements imposed by national tax authorities.

Masterfile Documentation

A "masterfile" approach to transfer pricing documentation is a practical and cost-efficient solution for MNCs with operations in a group of countries that follow a common set of transfer pricing principles, such as those outlined in the OECD Transfer Pricing Guidelines or in the Pacific Association of Tax Administrators documentation requirements.

Best practices in creating masterfiles combine the centralized approach to documentation development with information gathering and review at the local level. NERA’s global network of transfer pricing experts provides MNCs with the capabilities to utilize our extensive data resources to implement this robust approach.

FIN 48 Support

FASB Interpretation No. 48 (FIN 48) outlines procedures for recognition and measurement of uncertain tax positions in order to record them on financial statements. In a transfer pricing context, the tax benefits are often considered equivalent to the lack of increased income recognition in a given country resulting from transfer pricing adjustments imposed by the local tax authorities. Transfer pricing has a significant impact on FIN 48 disclosures of MNCs.

NERA assists clients with several aspects of FIN 48 implementation including:

  • Reviewing intercompany transactions to determine the appropriate units of account and material income tax positions, and to create appropriate recognition and measurement methods.
  • Providing advice on audit policies and administrative procedures followed by the tax authorities in different countries.
  • Preparing transfer pricing documentation to inform management’s opinion that the tax position will "more likely than not" be sustained upon examination.
  • Setting up measurement procedures that involve calculating the amount of tax benefits related to transfer pricing, projecting alternative outcomes that might be realized in resolving the position, calculating probabilities of realization of each outcome, and cumulative probability analyses.
  • Creating an implementation process to update FIN 48 analysis on a quarterly and annual basis.
Name Title Location Phone Email
Dr. Harlow Higinbotham Managing Director Chicago +1 312 573 2803
+86 21 6103 5544
+86 10 6533 4395
harlow.higinbotham@nera.com
Dr. Emmanuel Llinares Managing Director
Head of Global Transfer Pricing
Paris
Geneva
London
+33 1 70 75 01 93
+41 22 819 94 94
+44 20 7659 8650
emmanuel.llinares@nera.com
Sébastien Gonnet Director Paris
Geneva
+ 33 1 45 02 30 00
+41 22 819 94 94
sebastien.gonnet@nera.com
Dr. Stuart L. Harshbarger Director White Plains, NY +1 914 448 4185 stuart.harshbarger@nera.com
Nihan Mert-Beydilli Associate Director Los Angeles +1 213 346 3035 nihan.mert.beydilli@nera.com
Yuko Saito Associate Director New York City
Tokyo
+1 212 345 1963
+81 3 3500 3378
yuko.saito@nera.com
Dr. Vladimir Starkov Associate Director Chicago +1 312 573 2806 vladimir.starkov@nera.com
Tom Braukmann Principal Frankfurt +49 69 710 447 511 tom.braukmann@nera.com
Pim Fris Affiliated Consultant Brussels
Paris
+32 2 282 4355
+33 1 70 75 01 91
pim.fris.affiliate@nera.com
Dr. Alexander Voegele Affiliated Consultant Frankfurt +49 69 710 447 501 alexander.voegele.affiliate@nera.com
Title Type Author
Comments on OECD Discussion Draft on the Revised Guidance on Profit Splits Regulatory Filing Emmanuel Llinares, Harlow Higinbotham, Nihan Mert-Beydilli, and Vladimir Starkov
Apple and the CCCTB: Can the European Commission Have Both? Published Article By Dr. Emmanuel Llinares and Guillaume Madelpuech
Economic Analysis for Developing Countries—Comments on the IMF, OECD, UN, and World B... Regulatory Filing By Dr. Vladimir Starkov, Sébastien Gonnet, and Guillaume Madelpuech
Field Tax Audits in Germany Published Article By Dr. Alexander Voegele and Philip de Homont
The take on comparables: A French perspective Published Article By Guillaume Madelpuech
Comments on the OECD Public Discussion Draft on the Attribution of Profits to Permane... Regulatory Filing By. Pim Fris and Guillaume Madelpuech
Separating intangible value by surveys Published Article By Philip de Homont and Alexander Voegele
Risks Redefined in Transfer Pricing Post-BEPS Book By Sébastien Gonnet
Discussion of the Amendments to Chapter IX of the OECD Transfer Pricing Guidelines on... Memo By Pim Fris and Guillaume Madelpuech
Practical treatment of transfer pricing adjustments Published Article By Philip de Homont and Alexander Voegele