The „Transfer Pricing Documentation “ is often the trigger for transfer pricing projects within multinational groups. Today, almost all related-party units are bound to tax-related compliance requirements on documentation as well as cooperation with tax authorities and consultants throughout the filing & auditing procedures on income taxation. No preparation and non-compliance cause negligent risks on income estimation, income adjustments, and sanctions of non-cooperation.
The “Transfer Pricing Documentation” comprises all kind of fact pattern and arm’s length assessments regarding the related-party business of the multinational group, including arm’s length information. Moreover, in order to limit tax risk for the entity and the persons-in-charge, it is essential to demonstrate tax-compliance at all times.
The concept of the GTP® MANAGER is built on the recommendations of the OECD BEPS Action Plans and various national provisions around the globe, in order to support the transfer pricing manager in preparing, maintaining, and retrieving the “Transfer Pricing Documentation” of each related-party unit. Using the GTP® MANAGER, it becomes a standardized process to produce the Master File, the Local File, the CbC-Reporting and the like.
The workflows and documentation processes, integral to the GTP® MANAGER support any audit of Compliance Management Systems as well as give indication of the decree of completeness and the level of tax risk inherent in the transfer pricing system of the group.
So, the documentation of transfer pricing becomes a by-product of an ordinary and sound transfer pricing system.