Growth in transfer pricing enforcement will force analysts to rely more heavily on Asian financial statements

Journal
Hejazi, J.
China (People's Rep.)
International Transfer Pricing Journal 2008 (Volume 15), No. 6
FormatPDF
EUR
40
| USD
45
(VAT excl.)

Tax practitioners, in performing their transfer pricing duties and determining the split in intercompany profits between related parties, will need to rely on third-party financial statements to determine an arm's length range attributable to various related parties. This article focuses on how performing working capital adjustments, while making economic sense in certain circumstances, is, practically speaking, not possible when using Asian comparable data.