Everything revolves around data. This also applies to Transfer Pricing Technology. Why? By making use of data analytics for tax purposes, you can gain a competitive advantage: from your exposure as a taxpayer to risks, to providing opportunities where transaction data are concerned. Read more about it here.
A snapshot as a starting point for Transfer Pricing Technology
The results of your data evaluation provide a snapshot of the current situation. This snapshot offers insights into the improvement of Transfer Pricing processes. And it results in the clear, consistent and correct implementation of the policy for Transfer Pricing Technology. Therefore, the snapshot comprises the starting point of a continuous solution, whereby Transfer Pricing processes are monitored 24/7.
Tax Intelligence Solution
Tax Intelligence Solution (TIS) is capable of gathering relevant tax and financial data, with minimal impact on your IT team. This is achieved using the Enterprise Resource Planning (ERP) extraction program. Through this program, ERP data are saved securely in the Tax Intelligence Solution. Once all of the data points have been linked, the relevant information remains. This is the moment at which the data begin to deliver value. The Tax Intelligence dashboards are populated and updated with the processed information. You can then make good use of that information.
Transfer Pricing Automated Documentation
Transfer Pricing Automated Documentation (TPAD) is a dynamic tool for providing content to Word documents, based on Excel files, information requests and Word templates. Information requests contain information which is specific to local entities. Word templates contain general information applying to all of the various entity types.
By combining a Word template and an information request, with the aid of TPAD, several Local Files can be created at once. As a result, process efficiency is guaranteed. In addition, any mistakes which might potentially be caused by the manual processing of large amounts of data are eliminated.
Transfer Pricing Automated Documentation proceeds in the following order:
- Preparation of Local File templates relating to each type of business location.
- Preparation of information requests and sending these on to the local branches.
- Assessment of the information requests and using TPAD to prepare Local Files.
Country-By-Country Reporting Analytics
- Obligation to report
The BEPS project has led to the implementation of a standardised obligation to report on the part of multinational businesses with annual consolidated group sales of € 750 million or more: Country-by-Country (CbC) reporting.
Country-By-Country Reporting Analytics makes it possible to carry out detailed statistical analyses. This includes the generation of graphs which provide a clear overview of potential deviations, which may give tax authorities cause for further enquiry. Such analyses are used in the evaluation of the accuracy of the reports produced and in identifying areas which require further investigation and potential process repair work.
Review and Analytics
Inputs: preparatory basis > Process > evaluate the data and definitions, and use the preparatory basis in order to meet the statutory requirements/OECD Guidelines = Outputs: Summary of important areas for further investigation
Inputs: Country-by-Country reporting data in Excel > Process > Identify data risks and Transfer Pricing risks, benchmark against KPMG experience of peer group, consider potential areas for Tax and Customs Administration investigation = Outputs: Recommended strategy for managing reporting to tax authorities - what, where and how?
Want more information about Transfer Pricing?
If you would like more information about Transfer Pricing, Tax Intelligence Solution, Transfer Pricing Automated Documentation or Country-By-Country Reporting Analytics, then Meijburg & Co would be pleased to discuss this with you. Please contact one of our specialists.