Transfer Pricing General Concepts Checklist

Summary

This checklist provides an overview of the key concepts to keep in mind when dealing with transfer pricing issues that arise in transactions between commonly controlled companies or entities. You must determine pricing related to such transactions as if the parties were dealing with each other on an arms-length basis. Transfer pricing rules of the United States, and other countries, provide guidelines to ensure that terms are properly established. There are potentially severe financial consequences for not following appropriate guidelines in determining these prices, and much time is spent by practitioners handling adjustments and negotiating with tax authorities.