Friends of Ignition, Philip Newbold and Simon Re-Matthews spoke at our General Counsel Know-How series on Transfer Pricing.
Read some quick takeaways from the session below and you can watch the full recording of the session here.
What is Transfer Pricing?
It’s the price set for transactions between related or associated entities. Importantly, these prices must follow the arm’s length principle to ensure compliance with tax regulations.
Arm’s Length Principle
Intra-group transactions must be comparable to those made with independent third parties. Failure to adhere to this principle could result in significant penalties.
Documentation Matters
It’s essential to maintain both master and local files in line with OECD standards to demonstrate compliance. This can be crucial if you’re ever subject to audit or review.
SMEs, Pay Attention
As your business grows and expands internationally, you’ll increasingly fall under transfer pricing regulations. Getting ahead of these requirements with early planning will save you from potential legal and financial headaches.
Mitigation is Key
A well-documented transfer pricing policy along with solid inter-company agreements are your best defence against transfer pricing disputes and penalties. Proactive preparation is the key to reducing risk.
About Ignition Law’s General Counsel Know-How series
Ignition Law’s General Counsel Know-How webinar series delivers technical legal insights designed to make a real impact. Originally created to upskill our team, we found these sessions would provide valuable guidance for in-house counsel, seasoned entrepreneurs, and business leaders too—so we now ask our clients and network to join as well. Focused, practical, and technical, these webinars help you navigate legal challenges and stay ahead.
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