transfer pricing methodology - International Tax Services

Our six step approach to developing a robust transfer pricing methodology includes a series of phases that ensure an effective plan is executed. Our objectives are to mitigate your risk, minimize your taxes and assist your company with financial reporting compliance through international tax planning. Feeley and Driscoll's differs from other international accounting firms because we have a proactive approach focused on coordinating globally to ensure that our methodology is consistent from start to finish. Here is a brief overview of how Feeley & Driscoll's international accounting services can help your global company:

Phase 1: project strategy

During phase one our international tax advisors will assemble a multi national group that is suited to your company's needs. This team will determine project objectives, define the project scope and identify transactions to be analyzed.

Phase 2: preliminary analysis - Tax services international

Phase two is where an international tax planner will review your company's historical pricing methodology and profitability benchmarks. Our international accounting consultants will identify key variables and project a global budget.

Phase 3: preliminary recommendation

At phase three, recommendations are made as to the methodology to be used. A team consensus is reached through discussions with management and entity versus product line applications are chosen.

Phase 4: planning, analysis, research

Phase four is where we go to work. F&D will characterize inter-company transactions, research comparable transactions and apply comparability adjustments. This is the stage where consideration of functions performed and risk assumed are looked at in more depth. F&D will also derive a range of arms length pricing and evaluate the most reliable measure of arms length return.

Phase 5: transfer pricing report

During stage four we will prepare a draft of the transfer pricing report. We will also discuss the Tranfer Pricing Guidelines from the Organisation for Economic Co-operation and Development (OECD), local country rules and US transfer pricing regulations. From there, our US International tax consultants select the most appropriate transfer pricing methodology. At the end of stage four we will obtain input from your team, modify our draft, and issue you back your final report.

Phase 6: annual review and modification

F&D does not stop at issuing you a final report. Our international accounting services team will review financial results each year. We will identify variables in profit shifting, consider new products and services and discuss with management global growth plans. At this point, we will consider any adjustments for the current year if appropriate and modify our transfer pricing for the next year.

Find out how our International Financial Reporting Standards expertise can add value to your business. Email us or call us at 1 (888) 875-9770.

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