The last decade was defined by a range of international tax and transfer pricing developments, which came about due to the Base Erosion and Profit Shifting (“BEPS”) Action Plans by the Organisation for Economic Cooperation and Development (“OECD”).
Now the COVID-19 pandemic is further impacting a business’ transfer prices, analysis and documentation. The effect of the BEPS action plans and the current economic uncertainty is likely to increase the scrutiny of related party transactions by tax authorities. Hence, companies with significant cross-border related party transactions should think about the broader implications of their business decisions and consider taking appropriate actions.
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