Thomson Reuters has introduced a database on worldwide transfer pricing information for multinational companies.
The Worldwide Private Company Database from ONESOURCE is designed for transfer pricing professionals using data compiled through Thomson Reuters’ relationships with local tax authorities, corporations and service providers. It was developed in response to the growing number of transfer pricing rules and reporting requirements established by tax authorities around the globe to help multinational companies defend their tax strategies in today’s complex tax environment.
Transfer pricing is one of the most significant issues global organizations and tax authorities face, Thomson Reuters noted. Audits are on the rise, and the cost of noncompliance is both financial and reputational. The average audit takes 540 days, according to the company.
As tax authorities introduce additional rules and require corporations to provide detailed documentation to defend their policies, multinationals must be certain they meet the requirements of the arm’s length standard and provide the documentation to prove it. The new product from Thomson Reuters aims to address this challenge.
“Tax authorities are no longer satisfied with weak documentation and comparables that don’t take local trade into account,” said Joe Harpaz, managing director of corporate tax for the Tax & Accounting business of Thomson Reuters, in a statement. “Governments are demanding clear documentation with regional comparables to support transfer pricing methods.”
The new product provides private company information from a global network of local data providers, along with country-specific financial data and standardized financial line-items for complete transparency on how the data should be applied. Users can drill down into the original data source for more details.
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