Businesses are likely to see transfer pricing (TP) audits increase as the COVID-19 pandemic is contained. But taxpayers who improve documentation standards will be better placed to withstand greater scrutiny.
G7 leaders must ensure that the tax deal is approved at the G20 level as profit allocation rules are set to replace digital taxes. Taxpayers expect more work on the calculation of profit margins.
As the end of London Interbank Offered Rate (Libor) is approaching, multinationals should amend their TP policies and find a suitable alternative rate for their future financing.
The African Tax Administration Forum (ATAF) seeks to increase the taxing rights of African jurisdictions by simplifying the OECD’s pillar one blueprint and creating a level playing field when determining how multinationals’ profits are calculated.
