Taxes: Transfer Pricing
Transfer pricing it’s usually a complex issue for a multinational company.
Especially during audits.
I assisted clients in audits when that was a thorny issue. And I also assisted
in audits when that was a non-issue; with no change in tax liability.
I prefer the last one (for obvious reasons!)
New Tax Developments – Transfer Pricing Regulations
2015 brings good news for taxpayers affected by transfer pricing issues.
With a recent court case ruling favorably for the taxpayer it becomes evident
that IRS needs to change the way it conducts audits and litigates cases where
transfer pricing is involved.
Theories of how related parties “should behave” have long been part of the IRS’
strategy of conducting examinations. Recent court cases may change that.
The IRS has stated that it’s working toward improving its methods. And that it
needs to focus on facts rather than theories.
That is good news for taxpayers.
Tax reminder: October 15
On the “lighter”side of things: do remember you have less than ten days to file
your personal taxes.
(That’s for those of you who filed tax extensions.)
And, if you are filing at this time, it’s a strong possibility you have a tax
bill to pay.
It’s probably safe to say most people are not jumping up with joy when they have
to send a big check to Uncle Sam.
If you are one of them try and see things in a positive light: having a tax bill to pay
it means you have had a good, profitable year.
Remember what Oliver W. Holmes, Jr. said:
“Taxes are what we pay for civilized society.”
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