How transfer pricing disputes are growing in size

The size of transfer pricing dispute amounts has ballooned in recent years, a development that is likely to result in multinational companies having to face complex and uncertain financial reporting and compliance positions in the foreseeable future.

Steven Wrappe, Grant Thornton National Technical Leader for Transfer Pricing, discusses why the size of transfer pricing disputes has risen so sharply in an article for Bloomberg Tax called “Transfer Pricing Disputes: Big, Getting Bigger.” Recounting how such disputes were large even 40 years ago, Wrappe details how certain developments, such as the growth of imports and exports between related parties, the multi-year nature of many disputes and the deeper focus on the examinations of intangibles, have combined to make transfer pricing disputes a major ongoing financial planning concern for any multinational.

Read the Bloomberg Tax article here.