Managing Transfer Pricing (Controversy in Supply Chain Companies)

As more countries start using transfer pricing regulations and legislations, transfer pricing becomes a big controversy for tax administrators around the world, especially supply chain companies. There are many sides to this controversy, which are very explicate and tough to deal with at times. With more employees in supply chain companies, transfer pricing increases dramatically, which causes disagreements about the facts of the products and how the rules and regulations are applied based on how transfer pricing is used. Tax authorities around the world and especially in supply chain companies  like to target transfer pricing activities and also focus on the supply chain company. Some people argue that transfer pricing can either help the company by focusing on the business supply chain and making sure transfer pricing helps the supply chain companies positively by being able to distribute and manage their products and goods. However, some argue that transfer pricing has many risks that can eventually bring down the supply chain companies. Some of these risks include double taxation, risk of a transfer pricing audit, and even litigation and arbitration. One thing that some transfer pricing professionals around the world help supply chain companies do is to help them get out of these risks and make sure that transfer pricing affects the supply chain companies positively. Advanced Pricing Agreements, Competent authority relief, Arbitration procedures, and Audit defense and litigation support are some areas transfer pricing professionals focus on to make sure that these risks are avoided and to make sure that the supply chain companies flourish.


"Global Transfer Pricing Controversy Network - Ernst & Young - United States." Global Transfer Pricing Controversy Network - Ernst & Young - United States. N.p., n.d. Web. 18 Oct. 2012. <https://webforms.ey.com/US/en/Services/Tax/International-Tax/Transfer-Pricing-and-Tax-Effective-Supply-Chain-Management/Article_TP_Global_transfer_pricing_controversy_network>.