Transfer pricing risk assessment is the process of identifying and assessing the risk associated with cross border transactions that multinational enterprises engage into, with a view of determining whether the risk is worth pursuing through conduct of a resource-intensive audit. Tax administrations are confronted by an increasingly complex set of cross-border transactions between related parties due to increased globalization and the need of multinational enterprises to create a local presence in many countries. This situation creates significant resource constraints to many tax administrations; hence the need for decisions on how to most effectively deploy the available audit resources by selecting the most worthy cases (i.e., the cases in which there is the highest risk transfer pricing with a possibility of yielding significant additional tax revenue).
The workshop aims at exposing participants to relevant approaches to TP risk identification as well as to the ATAF TP risk assessment toolkit. Additionally, several anonymized case studies will be presented to the participants for analysis, feedback and subsequent discussion of the key tax risks in each of the cases
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