Transfer Pricing

CRA has prepared transfer pricing reports for use across the globe. Our documentation helps multinational companies mitigate their audit risk and defend their transfer pricing policies when audits occur. We prepare transfer pricing documentation that satisfies Internal Revenue Code Section 6662(e) and Master File and Local File reports consistent with Chapter V of the 2017 OECD Guidelines and the specific requirements of various tax authorities around the world. CRA maintains live Country-by-Country Reporting sheets, Master File, Local File implementation status by jurisdiction, and a documentation risk diagnostic tool. To find out the latest on BEPS Action 13 requirements by jurisdiction, click here or download a PDF.

CRA economists have prepared expert witness reports and testimony for US Tax Courts, US Appellate Courts, US state courts, Canadian Courts, and Australian Courts in some of the highest profile cases in the history of transfer pricing, including DHL, Nestle, National Semiconductor, GlaxoSmithKline, Xilinx, Nortel, and Coca-Cola.

We have supported clients under audit by tax authorities, engaged in competent-authority proceedings, and negotiated numerous advance pricing agreements for inbound and outbound transactions of tangible products and intangible assets across a number of industries and countries in Australia, Canada, Italy, France, Germany, Hong Kong, Japan, Malaysia, the Netherlands, Norway, Singapore, Switzerland, the UK, the US, and other countries.

Cross-border controlled transfers of intangible assets and property are amongst the most high stakes transactions that multinational corporations can enter into. CRA has extensive experience advising multinational clients on the value of their intangible asset portfolios for transfer pricing purposes for qualified cost-sharing arrangements, inbound and outbound licensing, and foreign restructuring of IP assets utilizing income and market-based methods consistent with US and OECD methods.

CRA economists have provided expert witness testimony before the US Tax Court in cases involving intangibles, and possess the experience and judgment needed to tailor economic and financial models based on the unique facts and circumstances of each case.

Our experts are experienced in the analyses, methods, databases, and models specific to financial transactions and the financial services industry. Common financial transactions entered into by controlled parties include intercompany loans, cash pooling, guarantees, captive insurance, factoring, and hedging. The transfer pricing of financial transactions has been the subject of new guidance from the OECD and the UN and is often highly scrutinized and disputed by tax authorities around the world.

CRA experts are frequently involved in M&A transactions, including due diligence and post-deal integration. Exposures to transfer pricing adjustments can be substantial and ASC740 reserves may not paint the whole picture, which means that buyers need to understand the transfer pricing posture of the target. Leveraging our extensive experience in dispute resolution and knowledge of the changing regulatory landscape, CRA provides an independent assessment of potential transfer pricing adjustments.

Tax efficiency of the deal can be enhanced by effective post-deal integration. We have assisted taxpayers to contribute acquired IP into an existing cost-sharing arrangement, migrate acquired IP to align with the buyer’s management structure, and harmonizing transfer pricing policies.

CRA helps companies reach their strategic objectives by developing sound transfer pricing planning strategies and practical transfer pricing policies that respect arm’s length principles. Our planning engagements include establishing transfer pricing benchmarks, submitting and negotiating advance pricing agreements, pricing all types of intangible assets transferred during a business restructuring, and analyzing the allocation of risks and associated transfer prices between related companies. Clients in many sectors and industries, including consumer products, energy, life sciences, media, retail, and technology, have relied on our planning advice. We have also been called upon to provide objective assessments of strategies developed by other firms.

Transfer pricing and customs are clearly intertwined as the price of a good sold from one country to another is based on transfer pricing targets, however the reporting and testing requirements for customs and transfer pricing diverge. CRA’s transfer pricing group has helped companies navigate both US and foreign customs reporting and audits bridging transfer pricing and customs requirements.