Local tax authorities are getting increasingly more data from companies. We cannot escape from big data anymore. Data is collected through amongst others mobiles, internet searches and face recognition. The same applies increasingly to corporations and MNEs.
The stream of data from MNEs to tax authorities has led to all kinds of initiatives to use intelligent software tools to select transfer pricing audits. To add another abbreviation, these initiatives to use intelligent software could be summarized as “Tax Intelligence” or TI.
The use of TI already leads to follow-up questions and perceptions by local tax authorities. These questions and perceptions combined with (often) a lack of capacity to obtain a good understanding of the company and the intercompany transaction leads to more questions, followed by tax audits with a high risk on more and more disputes.
We believe it is not enough to prepare transfer pricing documentation and pray for passing the TI assessment of local tax authorities.
How do you prepare for TI?
MNEs have limited time to contemplate and react on the new reality. Therefore, we believe strongly in interactive sessions, where we can discuss business goals, share best practices, identify areas which require more attention, identify specific topics and potential next steps.
Combined with high level analyses of the financials, this will lead to greater awareness of the upcoming challenges and topics to be addressed and changes to the strategy.
As such, at Quantera Global, we believe that an interactive strategic session is an excellent start to support our clients optimally and to assist in the preparation of the challenges ahead.
Another option to discuss TI or related transfer price topics is our roundtable on advanced tax management of 22nd October in Eindhoven.
Are you interested in a strategic session or/and the roundtable? Please contact us for more information.
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