Transfer Pricing in the Spotlight: Experiences of Our Clients

~2-minute read. This article highlights some statistics on transfer pricing (including audits and adjustments) uncovered by our survey of 1,250 MNCs.

In 2017, CrossBorder Solutions interviewed 1,250 multinational corporations. Our survey focused on three primary areas. First, we examined the overall importance of transfer pricing. Second, we looked at the audit and adjustment experience that MNCs have had with tax authorities throughout the world. Finally, we scrutinized how the set of companies have dealt with the documentation requirements on a global basis.

Below are some of the more interesting findings from the survey:

  • 78% percent of respondents rated transfer pricing adjustments as the number one tax issue.
  • 75% of respondents indicated that transfer pricing was a core focus of a past audit.
  • 82% of respondents expect an examination by a tax authority into their transfer pricing in the next two years.
  • 58% of respondents that were audited for transfer pricing, had the audit result in an adjustment.
  • 59% of respondents that claimed that they were audited for transfer pricing had not completed their documentation on a contemporaneous basis.