Transfer Pricing Diagnostic

By understanding and enhancing your transfer pricing strategy, you can:

• Help ensure compliance and avoid costly penalties
• Improve your global tax efficiency
• Enhance cash flow management
• Increase your readiness for potential business transactions

Why it matters to you:

• If you have overseas operations, the IRS must analyze your intercompany pricing
• Transfer pricing impacts your tax liability, cash flow, and business value
• With the right strategy, it can be transformed from a risk into an advantage

Our Transfer Pricing Diagnostic:

• Uncovers risks and opportunities
• Requires minimal investment
• Provides actionable insights

Results the company saw

Detailed Insights

Examples -- Largest Risks Identified

Our diagnostic report identifies critical transfer pricing exposures that could impact your business. While each analysis is tailored to your organization's specific circumstances, below are some examples of potential risks we commonly uncover and how to address them.

Key Notes

• Some solutions may address multiple risks simultaneously
• Option 1 typically provides comprehensive risk management
• Option 2 offers a pragmatic, potentially lower-cost approach

	IRS Penalties Potential Risk:  40% of the disputed difference in immediate tax penalties Option 1: Full penalty protection: Create and document complaint transfer pricing policies Option 2: Penalty mitigation: Outline transfer pricing policies in truncated support
	Reduced Income on the Sale of Your Business Potential Risk: Lower offer price for your business because transfer pricing is not established Option 1: Develop and document transfer pricing to prepare for deal diligence Option 2: Equip deal principles to address transfer pricing concerns through correspondence
	Reduced Leadership Morale Potential Risk: Employee turnover Option 1: Align success metrics to value creation with documented processes Option 2: Recognize and communicate value creation across the organization through correspondence

Examples -- Largest Opportunities Uncovered

Our diagnostic report also unlocks hidden value within your transfer pricing structure. Again, while each analysis is tailored to your business's unique characteristics, here are some examples of the opportunities we typically uncover and how you can capitalize on them.

Key Notes

• Some solutions may address multiple opportunities simultaneously
• Option 1 typically provides comprehensive opportunity management
• Option 2 offers a pragmatic, potentially lower-cost approach

	Improved Cash Flow Potential Opportunity: Up to 10% or more of taxable income Option 1: Analyze business with transfer pricing lens, calculate and execute adjustments, record strategy with full documentation Option 2: Estimate and execute transfer pricing adjustment (higher risk without documentation support)
	Improved Effective Tax Rate Potential Opportunity: 20% lower (or more) global effective tax rates Option 1: Consider global entity strategy and tax advantages and formally document transfer pricing support Option 2: Create truncated transfer pricing policies reflecting business strategy
	Effective Policies for Global Expansion Potential Opportunity: Aligning policies with facts to lower both taxable income and effective tax rates Option 1: Establish and document comprehensive transfer pricing policies for global expansion Option 2: Apply regular macro-level transfer pricing adjustments based on truncated analysis