There are many companies that are aware of the need to assess the suitability of their current Transfer Pricing policies, but who may be concerned about the costs involved in a full-scale review.  A simple first step in this process may be to carry out a benchmarking exercise to understand more fully whether current pricing is within an acceptable arm’s length range.

Carrying out a basic review using the comparable profits method is one way of achieving this.  Whilst this methodology will not necessarily be considered the ‘best method’ by an auditing tax authority, it is a good way of quickly assessing your Tax Risks.

ReferencePoint is a unique service offered by pfTP. It provides a standardized set of indicators for use in CPM analyses. In providing this service, pfTP uses its specialized expertise in data development to select a sample of companies based on financial and descriptive information provided by its client. This service is carried out on the understanding that other essential aspects of Transfer Pricing such as the functional analysis and consideration of alternative methods remains the responsibility of the client.  ReferencePoint also can be used to update samples from previous analyses and  to assess the impact of different indicators.  

The price for the basic ReferencePoint service begins at 5,000 Euro. The service is available for a range of industry types that have standardized functions, risks and assets. To discuss the possible use of this service for your company or client, send a message to Catherine Hiriart-Durruthy using the WebMail facility or directly to: chd@pfTP-transferpricing.com.