Transfer pricing

Tax

Transfer pricing describes the legislation and guidelines used to select and support “arm’s length” prices charged between associated parties.

The arm’s length principle is key to transfer pricing and is the price which two unrelated parties would agree to pay for a product or service in the open market. Many tax authorities, including the UK, require transactions between associated parties to be recognised at ‘arm’s length’ prices for tax purposes. Multinational groups which fall within the transfer pricing legislation of a particular jurisdiction are required to maintain transfer pricing documentation to support the arm’s length nature of their controlled transactions.

Our experienced and dedicated transfer pricing team can assist you with:

Designing your transfer pricing policies.
Preparing your transfer pricing documentation, including coordinating transfer pricing documentation projects across multiple overseas territories.
Undertaking economic benchmarking analysis to establish arm’s length prices.
Operational transfer pricing, including assisting with the practical implementation of your transfer pricing policies.
Transfer pricing controversy.
General transfer pricing advice and the restructuring of existing policies.
Reviewing inter-company arrangements to identify other potential tax issues, such as withholding tax or VAT.

“We engaged Saffery Champness to assist with a specific transfer pricing project around our intercompany sales and purchases. Dawn took the time to understand our business model and the transaction flow. What Dawn prepared for us was an incredibly practical solution for our transfer pricing that was simple to implement and straightforward to obtain the data to use for the calculations. It aligned with the business processes and provided a transparent transfer pricing policy for the business to follow.”

Group Finance Manager from a large multinational distributor

“I recently introduced Dawn and the Transfer Pricing Team at Saffery Champness to one of my client’s regarding an urgent need for business critical advice/guidance. I was aware that my client was under considerable time pressure and had been advised to go to one of largest providers based on the premise that ‘big is obviously best’.

“Dawn and her team acted promptly, put my client’s at ease and very importantly, delivered pragmatic advice on a complex issue which my client’s were able to act on in a very timely manner.

“The fees were both appropriate and as quoted…and the end result has helped my client hugely.

“Thank you Dawn for your professionalism and your assistance in my client’s time of need.”

Jonathan Fox