Financial Transactions, Tax Valuation & Modelling

Tax valuation economics and modelling

Responding to the increasing need for quantitative analysis in transfer pricing

Transfer pricing operating models and regulations are becoming increasingly sophisticated. In the last few years new requirements have emerged regarding the pricing of intercompany transactions. To stay compliant taxpayers need to engage more in transfer pricing analysis.

Many cross-border reorganizations need valuation studies to validate tax positions. Value chain planning strategies demand tax modelling efforts to evaluate the implications of competing planning scenarios. Quantitative analysis and the application of economic theory of transfer pricing are mainstream trends.

Valuation and quantification of transfer pricing positions

Value Chain Management, Transfer Pricing Documentation and Controversy and Dispute Resolution cannot succeed without knowledge and experience in Financial Transactions , Tax Valuation  and Modelling.

Substantiation and quantification of transfer pricing positions require knowledge of taxation and financial economics. KPMG Meijburg & Co’s Global Transfer Pricing Services Practice includes experienced tax specialists, economists and valuation specialists who can help you navigate these challenges.

What are the key difficulties for taxpayers?

  • Staying compliant with transfer pricing rules in the areas of intercompany financial transactions and valuation. The implementation of these rules requires specialized financial economics and valuation knowledge.

  • Understanding the nuances in financial and valuation analysis performed for tax purposes, as opposed to similar analysis prepared by the organization for other ends such as external financial reporting.

  • Evaluating the effect of transfer pricing policies on the organization’s broader tax and financial performance indicators.

  • Compiling robust documentation to substantiate the outcome of a complex economic analysis during tax audits.

The specialized nature of these areas makes it favorable to collaborate with an external advisor in place of developing the internal expertise.

How can we help?

Meijburg & Co’s practice includes tax specialists, economists and tax valuation specialists who help you navigate the economic and regulatory landscape.

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