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Transfer Pricing

Multinational companies face mounting international tax planning and compliance challenges. When a company engages in cross-border intercompany transactions, those transactions can impact tax rates, shareholder wealth, corporate after-tax cash flow, and more. Transfer pricing, often used by multi-entity firms when the firms’ individual units are treated separately, can significantly impact shareholder wealth because of its influence on how taxable income gets distributed among countries with different tax rates.

In fact, transfer pricing is one of the top audit issues for the IRS, and multinational businesses could risk incurring steep penalties of 20-40 percent on transfer pricing adjustments if they are not in compliance. At the same time, the rules surrounding transfer pricing offer businesses the flexibility to set the conditions around their intercompany transactions. Having the ability to plan can enable your business to optimize the allocation of income within its larger corporate structure.

Transfer pricing is a highly specialized tax discipline.

As part of your international tax strategy, you’ll want to work with a CPA who can help ensure that you’re not only in compliance, but can help you avoid double taxation, interest on tax underpayment, and extended disputes with tax authorities. That includes litigation.

The Lumsden McCormick International Tax Team will work with you to identify transfer pricing risk areas and ensure compliance with complex regulations and documentation requirements. We proactively track all the latest developments in the global marketplace to adjust your strategy as needed. For more than 15 years we have used our internal resources and membership in the BDO Alliance USA to help manufacturers, construction firms, public companies, and other businesses maintain compliance and work through the many issues of conducting business globally

For more information about our transfer pricing services, contact Mark Janulewicz or complete the form below.

Services Leaders

Mark Janulewicz

Mark G. Janulewicz, CPA


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Webinar Series Part IV: IRS Audit - Coming Soon Near You

Webinar Series Part IV: IRS Audit - Coming Soon Near You

July 14, 2021

The executive branch is looking to increase revenue for the IRS. Translation: expect to see an increase in the number of IRS audits being performed, including industries not traditionally targeted.

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Webinar Series Part V: Changes to Lease Accounting and How it Impacts Your Business

Webinar Series Part V: Changes to Lease Accounting and How it Impacts Your Business

July 27, 2021

The accounting for leases is changing significantly. The required implementation of FASB ASC 842 will mandate that most leases are included on the balance sheet as a right-of-use asset, with a corresponding lease liability. The new standard will impact nearly all commercial businesses and nonprofit organizations and is effective for annual reporting periods beginning after December 15, 2021.

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