Transfer Pricing

Put simply, transfer pricing is the number one international tax area that multinationals are concerned about. The UK's corporation tax self assessment regime in respect of transfer pricing puts the onus on the taxpayer to verify 'arm's length' prices on all related-party transactions. In addition, the taxpayer must fully document how the arm's length prices have been arrived at. In 2004, challenges under EC law prompted a change in UK legislation so that UK to UK intra-group transactions must also be on arm's length terms. Interest and penalties are imposed for non-compliance, even for companies with losses – so there could be serious financial implications if a company does not take its transfer pricing obligations seriously.

Grant Thornton's team includes experienced transfer pricing specialists and economists. We can provide assistance with the preparation and maintenance of advance pricing agreements and transfer pricing documentation or review internal documentation to ensure that it is compliant. We have significant experience of transfer pricing planning projects and tax enquiry defence work. We also offer a range of benchmarking services to help ensure that your inter-company prices charged are in accordance with the arm's length principle.