-
International Financial Reporting Standards
Grant Thornton International member firms combine broad international experience with technical know-how in audits of IFRS based financial statements
-
Financial Reporting Audit
Our Audit division has the capacity and knowledge to provide an assurance that the Final Financial Statements episodes will be reliable and timely
-
Compliance
We are committed to providing a service with the highest standards of excellence, integrity, and experience
-
Mexican Social Security & Local Tax
Growing businesses need strong tax management to meet current and future tax liabilities and we can help you achieve this, whatever challenges you face
-
International Taxes
Your people are probably your business’ most valuable asset. If you choose to send them overseas you will face certain tax liabilities, social security, and pension obligations
-
Prevention and detection of money laundering and anti-corruption practices
Prevention and detection of money laundering and anti-corruption practices. The process of hiding or disguising the existence, illegal source movement, fate or illegal use of property or funds, proceeding from illegal activities
-
Business consulting
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle
-
Business risk services
Businesses worldwide are facing constant challenges as they try to navigate the wide range of risks involved in complex global markets
-
Forensic services
Fast-growing organizations need advisers that can dig deep into their business and provide detailed solutions
-
Forensic services
Fast-growing organizations need advisers that can dig deep into their business and provide detailed solutions
-
Forensic services
Fast-growing organizations need advisers that can dig deep into their business and provide detailed solutions
-
Forensic services
Fast-growing organizations need advisers that can dig deep into their business and provide detailed solutions
-
Forensic services
Fast-growing organizations need advisers that can dig deep into their business and provide detailed solutions
-
Forensic services
Fast-growing organizations need advisers that can dig deep into their business and provide detailed solutions
-
Forensic services
Fast-growing organizations need advisers that can dig deep into their business and provide detailed solutions
-
Forensic services
Fast-growing organizations need advisers that can dig deep into their business and provide detailed solutions
-
Recovery & reorganisation
We focus on identifying and resolving issues affecting profitability, protecting enterprise value and facilitating a full recovery where possible
-
Transactional Advisory Services
We can help you understand the value drivers behind successful transactions
-
Internal Audit
In today's global economy, organisations - both public and private - must demonstrate that they have adequate controls and safeguards in place
-
Payroll Outsourcing
Payroll and, in addition, personnel administration are the biggest and most time-consuming challenges facing expanding organisations
-
Accounting outsourcing
The goal is to increase the effectiveness of accounting processes, supporting your core business. It was created especially for businesses with high information needs, usually related to working in an international environment
-
Human Capital Services
We provide solutions for your company in order to identify, evaluate, reward and retain the best talent
Transfer pricing practices in the dock
06 Aug 2013How businesses can avoid further scrutiny
The issue of transfer pricing has hit the headlines in the UK and the US over recent weeks due to the relatively low level of corporation tax multinationals such as Amazon, Apple, Google and Starbucks.
For the non-tax professionals, transfer pricing occurs when a division of a multinational in one country charges a division in another country for a product or a service. These ‘transfer prices’ are supposed to reflect what two independent parties would have agreed upon in identical circumstances.
For multinationals, transfer pricing rules say that profits need to be allocated from one subsidiary to another where goods or services flow between them. In the case of Starbucks, profits from UK sales are transferred to its roasting subsidiary in the Netherlands and the trading arm in Switzerland. This is completely normal practice.
The issue is how much is being transferred.
Starbucks made £398m in revenues in the UK in 2011/12 but recorded a net loss once costs to subsidiaries were factored in. No profits means no corporation tax.
As I have mentioned previously, the issue has now moved into the realms of morality with campaigners calling for the multinationals to pay their ‘fair share’. A nebulous concept but brands can suffer if they are deemed in violation. Consumers can vote with their feet. Note the extra £10m Starbucks has offered to pay.
And scrutiny looks set to increase with global bodies such as the G20 and the OECD under pressure – not least from cash-strapped exchequers – to tighten rules. Companies need to make sure their transfer pricing policy justifications and associated documentation can stand up to intense scrutiny and challenge.
It is far from an exact science but businesses should adopt pragmatic transfer pricing policies which balance the trade-off between certainty, risk and tax optimisation. Those that do pull back some of the time and resources spent on resolution.
Francesca Lagerberg is global leader for tax services at Grant Thornton.