Transfer pricing isn't just for the very large multinationals, they tend to be in the headlines but transfer pricing rules actually impact middle sized businesses and many large and sometimes small businesses too. It's not just an issue for very large multinationals particularly in overseas countries.
In the UK we have rules that exclude the very smallest companies but in many overseas countries we don't have similar equivalents. Therefore if you trade cross-border and you’re a group of companies then it's likely that transfer pricing is going to have an impact on you.
All businesses regardless of size need to review their transfer pricing strategies. In the new environment, there are tax compliance risks, planning opportunities and there are new reputational risks, so all businesses need to think about those three things.
Large multinationals need to review their tax compliance and their tax planning issues, but in addition, they need to think about reputational risk. The new rules coming in expose the larger companies to commercial and sensitive information leakage and also to the risk of having their name splashed across newspaper front pages or the news headlines. These risks take this issue out of the tax department and into the boardroom, and they need to be addressed by large multinationals.
Download a copy of the transfer pricing help sheet.