“Companies that fail to rigorously develop, implement and manage their transfer pricing policies face growing reputational and financial risks,” said P. Scott Ozanus, vice chair of KPMG’s U.S. Tax practice. “This is especially true in light of the increased attention regulators are placing on the integrity of intercompany accounting and organizations’ underlying control environment.”
Among the growing risks companies face are materially misstated financial statements, more transfer pricing audits, and multi-million dollar tax adjustments and related penalties, he added.
“Our new service is aimed at helping multinationals better manage these risks by efficiently integrating transfer pricing into daily operations,” Ozanus said. “Our focus is on helping multinational companies not only increase the transparency of their transfer pricing practices and reduce financial statement and tax risk, but also enhance the performance of their tax and accounting departments and lower their tax compliance costs.”
Jerry Klopfer, a tax principal in KPMG’s Economic & Valuation Services practice, and Tony Bevacqua, an advisory principal in the firm’s Financial Management group, will head a multi-disciplinary team that will deliver the service.
Klopfer, based in Chicago, brings to the assignment 17 years of economic consulting experience to a range of multinational clients. His areas of focus have included measuring business segment performance, assessing and implementing intercompany pricing policies, valuing businesses and intangible assets, and analyzing the economic impacts associated with business decisions.
Bevacqua, based in Philadelphia, has had a combined 20 years of management consulting and industry experience advising clients through successful transformation initiatives. He has held account and consulting engagement responsibilities for projects ranging from focused performance assessment and financial process redesign to global transformation and systems implementation programs.
“Operational Transfer Pricing is one of several new cross-functional services at KPMG, including the recently announced Tax Efficient Supply Chain Management service,” Ozanus added. “These new high-impact services reflect the growing opportunities we see to meet our clients’ evolving business needs.”
Tax and business professionals interested in learning more about integrating transfer pricing into their company’s day-to-day operations are invited to attend a KPMG TaxWatch webcast, “Bridging the Gap between Transfer Pricing Policy and Accounting Integrity – Part I,” on Thursday, June 21, from 2 p.m. to 3 p.m. (EDT). Click here for more information, including registration details.
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s member firms have 145,000 people, including more than 8,000 partners, in 152 countries.
Robert Nihen/Deborah Primiano