TRANSFER PRICING
Assistance in all aspects of transfer pricing.
Transfer pricing is the fuel of international taxation for internationally-operating groups. They enable the tax base for corporate income tax (and its foreign equivalent) to be apportioned between the various countries in which the Group operates.
The subject is of interest both to groups seeking to optimize their overall tax burden by locating their profits in low-tax countries, and to governments that see a tax base disappear to the benefit of their treaty partners.
International norms have been defined as a standard for assessing the level of these intra-group prices, based on both a legal approach (nature of the reciprocal obligations between the parties) and an economic approach (prices reflecting a so-called arm’s length level).
This area of expertise requires a mastery of legal and economic concepts, so as to be able to calmly and effectively grasp the strategic challenges of transfer pricing.
Over the years, AlterTax’s lawyers have developed a solid practice in all aspects of transfer pricing, and are able to assist groups of all sizes and in all sectors of activity in defining and securing their transfer pricing policies.
This competence covers in particular :
- The development and implementation of robust pricing policies in line with arm’s length principles (art 57 of the CGI and art 9 of the OECD model convention).
- Support changes in intra-group pricing policies following changes in the Group’s business model (external growth operations, development of skills centers, opening up of new markets, etc.).
- Risk analysis of transfer pricing policies and ways to control them
- Establishment and preparation of all transfer pricing documentation and declarations (meeting obligations in France and in all countries where the Group operates through its subsidiaries, branches, offices, joint ventures, etc.). Implementation of updating methods using high-performance technological tools
- Creation of benchmarks and economic analysis models to support positions taken by secure groups for all types of transaction (sale of goods and services, intra-group financing, restructuring of operations and supply chain, remuneration of intangible assets).
- Assistance with tax audits in France and abroad, coordinating the work of transfer pricing experts in all countries where transfer pricing issues arise.
- Representation of the Group and its subsidiaries before French and foreign tax authorities to resolve transfer pricing disputes
- Litigation management before French courts (TA and CAA)
- Management in the implementation of procedures to remedy double taxation (amicable procedure, arbitration)
- Negotiation and support for Advance Pricing Agreements (APAs) aimed at securing transfer pricing policy “risk” flows through an agreement with tax authorities
To be able to act as a relay in most of the countries in which our customers operate, we have forged numerous partnerships with recognized transfer pricing specialists who share our values of independence and operational performance.