Eighty-seven percent of multinational enterprises believe that transfer pricing is a risk when they manage their financial statements because of higher compliance requirements, according to a newly released survey.

Fifty-three percent of the 850 multinational companies polled by Ernst & Young said that their transfer-pricing compliance costs had increased. That was a big jump from 2005, when Ernst & Young found that only 29 percent of the companies it polled said their compliance costs had increased.

Eighty-two percent of the U.S. companies surveyed have had a transfer-pricing audit occur somewhere in their global operations since 2003. Fifty-two percent of all respondents have undergone a transfer-pricing examination since 2003, with 27 percent resulting in adjustments by the tax authorities.

Forty percent of all the respondents to the survey identified transfer pricing as their most important tax issue.

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