Supporting asset managers in developing compliant transfer pricing policies based on OECD guidelines and international best practice. Delivering pricing policies that are sustainable from both a commercial and regulatory perspective.
Asset management is a global industry and accordingly asset management businesses often operate across multiple jurisdictions giving rise to a need to fairly apportion profits based on the value contributed. Most tax authorities adopt the OECD’s transfer pricing guidelines to ensure that transactions between connected parties follow the ‘arm’s length principle’ – which requires transactions between connected parties to be treated in the same way if they would have been carried out under comparable conditions by independent parties.
Increased transparency and information sharing by tax authorities in relation to cross border transactions and the adoption of the OECD’s recommendations from the Base Erosions and Profit Shifting (‘BEPS’) project has rightly increased focus in this area. Furthermore, attention on the asset management industry’s ESG credentials has added even more pressure on asset managers to have robust transfer pricing policies in place.
How we can help:
- Support asset managers in developing compliant transfer pricing policies based on the OECD guidelines and international best practice, that are sustainable from both a commercial and regulatory perspective.
- Undertake benchmarking studies for comparable transactions in the asset management industry based on a functional analysis.
- Compile OECD compliant transfer pricing documentation suitable for presentation to HMRC and tax authorities.