Håkan Henningsson (BDO) answers a query on whether transfer pricing documentation can support a taxpayer’s claim that customs values are set in accordance with the arm’s length principle?
Question
Our group trades internationally and has a number of related subsidiaries across the world. The import values declared to the local customs authorities are based on our transfer pricing policy. Do we need to be concerned about local customs authorities challenging the values imposing fines and/or claiming underpayment of customs duties? To what extent can we use the support provided in our transfer pricing documentation to defend our claim that the customs values are set in accordance with the arm’s length principle?
Answer
Imagine the following scenario. A large UK multinational group sells its produce to its wholly owned distribution companies overseas. After...
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Håkan Henningsson (BDO) answers a query on whether transfer pricing documentation can support a taxpayer’s claim that customs values are set in accordance with the arm’s length principle?
Question
Our group trades internationally and has a number of related subsidiaries across the world. The import values declared to the local customs authorities are based on our transfer pricing policy. Do we need to be concerned about local customs authorities challenging the values imposing fines and/or claiming underpayment of customs duties? To what extent can we use the support provided in our transfer pricing documentation to defend our claim that the customs values are set in accordance with the arm’s length principle?
Answer
Imagine the following scenario. A large UK multinational group sells its produce to its wholly owned distribution companies overseas. After...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
