Risk management in transfer pricing consists of selecting adequate instruments relevant to the materiality of risk in transfer pricing, which the enterprise is exposed to. Effective risk management requires identifying the risk areas as well as quantifying the risk, and afterwards proper application of procedures that enable the reduction or an elimination of the risk exposure.
Assistance and advisory during the negotiation process with the Minister of Finance, including: an assessment of the validity and the chances of reaching an agreement, establishing an effective negotiating strategy, developing arguments in support of the proposed arrangements, and preparation of analyses essential in the negotiation process.
Assistance and representation during all the stages of the negotiation process, from the prefiling meetings, to the preparation of documentation and providing representation throughout the entire negotiation process, as well as in the execution phase of the APA.
Preparation, updating or analysis of the mandatory documentation prepared by the taxpayer for transactions performed with related entities in accordance with Article 9a of the Polish Corporate Income Tax Act.
Benchmarking studies are performed in order to verify the prices and margins that are applied by related entities. Verification is aimed at checking if the controlled transactions’ conditions conform to the conditions of comparable transactions entered by non-affiliated entities. Benchmarking studies are a necessary element of argumentation confirming that the prices established by the taxpayer are in the range of the market prices.
Flexibility in the planning of transfer pricing policies, in order to achieve the best possible settlement between related parties, in accordance with the tax laws. Drawing up the settlement rules and principles (such as the calculation of the level of prices/margins) that meet specific economic goals. Drafting and reviewing contracts entered by related entities with a particular focus on transfer pricing rules.
Identification of the transaction flows between the permanent establishment and the parent unit. Analysis of market level of prices/margins set by the permanent establishment in the transactions with related parties, and in the internal transaction flows between the permanent establishment and its parent unit.
Representation and assistance during the audit. Preparation of appropriate arguments, assistance in conducting studies and gathering documentation supporting the taxpayer’s position regarding transfer pricing.
Support in the proceedings under the double tax treaties and the convention on the elimination of double taxation. Analysis of the possibility of profit adjustment. Assistance during the procedure for the preparation of applications, representation before the authorities, the preparation of analyses, monitoring the procedures.
Training in transfer pricing includes pricing methodology, the preparation and process of updating documentation in accordance with Article 9a of the Polish Corporate Income Tax Act as well as preparation for the tax audit.