Tax Risk Management Of BD Corporation Transfer Pricing

Nowadays, the international market more competitive, related party transactions between associated enterprises have become a very common phenomenon for the transfer of goods and services, because many large groups to establish subsidiaries and branches to refine their division. Tax revenue as the main target countries of concern, related party transactions of national tax revenue also has a great impact. In order to control the tax authorities of tax revenue, tax authority will each affiliated company transfer pricing and related transactions rigorous detail. Because of this, tax planning and transfer pricing tax risk control into the contents of each group company strictly monitored. These wide ranges of transfer pricing methods exist on a large group of international subsidiaries and branches in. Big type of company will exist between different types of companies affiliated companies. Normal company, belonging to the high-tech industry or specialty goods sales company will exist between the different tax rates applicable to them. Affiliates will use this difference between the tax rate will shift most of their profits to low-tax affiliates, reducing the overall amount of taxable income to reduce taxes. Or take advantage of a transaction between affiliates of the company’s internal cost increases, thereby reducing taxes reduce profits. The tax authorities in a timely manner in order to be able to control the situation within the jurisdiction of the tax, would trade between affiliated companies strictly monitored, so how affiliates Prevention of transfer pricing is of great significance.Based on the latest policies and regulations related to transfer pricing, combined with BD Company and related companies transfer pricing specific arrangements, company analysis BD transaction amount on related party transactions, the transactions as a percentage of total transactions related to BD’s profit targets typical behavior of transfer pricing tax preexisting conduct risk identification and assessment. According to identify different types of tax risks, BD Company should provide evidence and explain the reasons for doubts aspect tax authorities. BD Company for everyone associated with trading options pricing methods and other reasons, the tax authorities must provide a reasonable justification and explanation. Finally, BD Company transferred tax risk pricing behavior existed in response and proposed several preventive measures.