Transfer Pricing

APA, Controversy, and Litigation Support

NERA's conflict resolution capabilities build on our staff's established reputation as expert witnesses and their ability to apply sound, creative economic theory in the resolution of tax disputes. We have substantial experience providing economic advice through partnerships with leading law, tax, and audit firms in tax planning matters, as well as litigation and controversy support.

Advance Pricing Agreements and Competent Authority Negotiations

NERA experts have particular expertise structuring the economic framework of advance pricing agreements (APAs) and assisting competent authority (CA) negotiations between tax authorities involving the US, Canada, Japan, China, the EU, Australia, and other countries. While key negotiation issues may vary among cases, NERA experts provide a broad range of support services including: 

• Developing negotiation strategy based on a clear understanding of tax authorities’ position and potential points of conflicts. 
• Providing economic analysis and evidence to reinforce support for the taxpayers’ position, and advising tax authorities about underlying economic theories and business practices.
• Developing alternative methodologies or preparing options to facilitate discussion and resolve "standoffs" in negotiation.

Transfer Pricing Audit Support

NERA experts have substantial experience in assisting clients who are undergoing transfer pricing audits in a variety of countries. NERA experts have worked extensively and successfully with taxpayers and their attorneys to address needs arising in a variety of audit support cases. Our work has included:

• Conducting objective and fact-based analysis in the early stages of the audit in order to assess the strength of a tax authority case, and assisting in developing the overall negotiation strategy based on that assessment.
• Assessing the purpose of data requests by tax authorities and preparing strategic responses with appropriate supplemental explanations.
• In cases when income adjustments may be proposed by the tax authorities, providing economic analysis of factors that should be considered in assessing such adjustments, which may reduce or eliminate the potential adjustments.