double taxation transfer pricing multinationals

double taxation transfer pricing multinationals: "Multinational CFOs are increasingly looking to avoid the double taxation that can occur from selling a product in one jurisdiction when it is manufactured in another. Transfer pricing, or the movement of goods and services in order to allocate profits, has become a high-ranking concern for CFOs, according to a survey by Alvarez & Marsal Taxand, an affiliate of Alvarez & Marsal advisory firm.

Senior financial executives of more than 30% of the 60 businesses with more than $1 billion in annual revenue that were surveyed said transfer pricing was the greatest risk they were facing, just behind global compliance at 32%. The same pattern held for the 158 smaller firms surveyed that took in less than $1 billion in annual revenue. Out of the latter group, 20% claimed transfer pricing was a main risk, while 23% said global compliance was their greatest risk. Overall, more than 300 financial executives were surveyed in the study, with more than 70% representing smaller firms."

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