Advanced Pricing Agreements (APAs) are helping to alleviate the risk of double taxation. In turn, Mutual Agreement Procedures (MAPs) may offer a smoother path to conflict resolution. But neither is a panacea.
As fiscal deficits have sharpened the focus on transfer pricing. Many tax authorities believe that directing resources to transfer pricing yields the best returns, which is leading to an increase in the frequency and depth of investigations.
With this escalating risk, our article reflects on recent experience and what this has taught us about picking through the transfer pricing minefield.
Corporations can eliminate any unnecessary risk and aggravation by being well prepared. Talk to your local firm about how Grant Thornton can help your organisation find the right balance between uncertainty and optimisation and how to make the most of the APA and MAP procedures.
