Growth in Transfer Pricing Enforcement Will Force Analysts to Rely More Heavily on Asian Financial Statements
International Transfer Pricing Journal, No. 6, 2008
Posted: 12 Dec 2008 Last revised: 20 May 2012
Date Written: December 12, 2008
Tax practitioners, in performing their transfer pricing duties and determining the split in intercompany profits between related parties, will need to rely on third-party financial statements to determine an arm's length range attributable to various related parties. This article focuses on how performing working capital adjustments, while making economic sense in certain circumstances, is, practically speaking, not possible when using Asian comparable data.
Keywords: Transfer Pricing, China, Working Capital Adjustments
JEL Classification: B21
Suggested Citation: Suggested Citation