Skip to content Skip to footer

Transfer Pricing Benchmarking Studies

Given the increased level of scrutiny on Transfer pricing by Revenue Authorities worldwide, an assessment of a company’s compliance with relevant Transfer Pricing legislation should be a critical part of any mergers and acquisitions activities.

Historical non-compliance with Transfer Pricing legislation can result in exposure to material adjustments and penalties being levied by Revenue Authorities.

A Transfer Pricing due diligence exercise would consider factors such as:

An evaluation of whether or not the necessary Transfer Pricing documentation is in place for the intercompany transactions of the Target company;

As assessment of the Transfer Pricing documentation in place to determine whether or not it is sufficient to minimise the risk of the documentation not passing muster if reviewed by a Revenue Authority;

A review of supporting and evidentiary documentation, including legal agreements and financials; and

Quantification of potential Transfer Pricing exposure.