Transfer pricing perspectives: Winds of Change - PwC

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The "TPi" platform vision represents PwC'sthought leadership to achieve transferpricing integration in a more efficient andaccelerated manner at enterprise levelTPi – PwC's approach to transferpricing IntegrationThe “TPi” platform vision represents PwC'sthought leadership to achieve transferpricing integration in a more efficient andaccelerated manner at enterprise level.It provides industry leaders with a newperspective on transfer pricing strategicplanning and management, and has thecapability to transform disparate datasources into a timely information source,communicated in a consistent reportingformat. TPi enables leaders to:• Proactively monitor transfer pricetargets across various economic entitiesglobally so that action can be takenimmediately to remedy outliers• Plan and strategically execute new orcomplex transfer pricing policies bymeasuring and modelling the potentialimpact in future reporting periods,often without a substantial ramp-upin headcount• Meet bottom-line objectives and delivervalue to shareholders by enhancingeffective rate benefits• Achieve enhanced cost savingsthrough automationThe TPi vision is a custom-configured,integrated process and technology solution.It is not about inventing new technologiesor building new software or reports. TPiwill leverage your company's existinginfrastructure and data resources, tailorthem to affect an enhanced tax solution,and provide a more effective managementand reporting tool.TPi vision focuses on two core features:• Provide access to consistent, reliableand timely financial data across globalbusiness operations• Summarise key data for easy viewingand fast decision-making in the form ofa dashboard, based on user elections28 Transfer Pricing Perspectives. October 2011
TPi – Data ManagementMost multinational companies typicallyuse different enterprise resource planning("ERP") systems for accounting andfinancial reporting globally. Differentaccounting principles and various ERPconfigurations result in challenges whentrying to extract consistent tax data fromdifferent ERP systems. As raw data maybe used across multiple tax processes, it isparamount that the data can be accessed inan effective and timely manner, and thatthere is accuracy, integrity and consistencyin the data output.Figure 1Illustration of TPi Data ManagementFinancial source systemsFinancial consolidation(e.g. Hyperion)ERP(e.g. SAP, Oracle)Misc GL systemsWeb-enableddata collectionOn-site and off-site stakeholdersTax operations managementDashboard/web portalDocumentmanagmentWorkflowmanagementEntitymanagementThe TPi Data Management approachfocuses on leveraging the company'sexisting ERP, consolidation and businessintelligence (BI) systems, storingtax-sensitive data in a repository andcataloguing them in a manner that supportsadditional modelling and analyses.Fixed assets(e.g. BNA)Sales & use tax(e.g. Vertex)OtherBusiness intelligenceTax systemsTax provision softwareAs illustrated here, the pillar of TPi isits platform, which has the capability toextract financial data across the company’svarious ERP and other financial sourcesystems, and create an output of datain a consistent and streamlined format.The TPi platform can be activated andrefreshed in a timely manner to support theDashboard application.Extract, Transform& Load toolsWork in processTax data repositoryCompliance softwareAudit defense softwarePlanning defense softwareTax data archiveTransfer Pricing Perspectives. October 201129
Page 2: 2 Transfer Pricing Perspectives. Oc
Page 6: Russia adopts new transfer pricing
Page 9: Starting in 2014, domestic related-
Page 15 and 16: The trend of centralisation in mult
Page 17 and 18: The new frontier - centre-led model
Page 19 and 20: Limited risk entities and true‐up
Page 21 and 22: Is it possible to mount an argument
Page 23 and 24: Value Chain Transformation -beyond
Page 25 and 26: Governments around the globe are fo
Page 27: ProcessesTransfer pricing managemen
Page 31 and 32: ConclusionTPi changes the historic
Page 33 and 34: The question of who takes risky dec
Page 35 and 36: Why cost plus might be the wrongpol
Page 37 and 38: It is not easy to deal with risk in
Page 39 and 40: ConclusionIt will not always be the
Page 41 and 42: Perspectives on risk from GermanyIn
Page 43 and 44: Perspectives on risk from IndiaThe
Page 45 and 46: In 2008, we published an article en
Page 47 and 48: The taxpayer will also want to unde
Page 49 and 50: Proactive preparationTransfer prici
Page 51 and 52: Dealing with risk assessmentsMuch o
Page 53 and 54: Once a taxpayer has identified its
Page 55 and 56: ConclusionAlthough it goes without
Page 57 and 58: The Asia Pacific (APAC) region is i
Page 59 and 60: As can be observed from the diagram
Page 61 and 62: As more transactions involve Singap
Page 63 and 64: AuthorsSpencer ChongPartner, PwC Ch
Page 65 and 66: Conceptualising the challengeIntra
Page 67 and 68: During the course of recent transfe
Page 69 and 70: Passive associationIn performing a
Page 71 and 72: ConclusionsTransfer pricing for fin
Page 73 and 74: Let’s talk business realities!Whi
Page 75 and 76: The appropriateness of using a trad
Page 77 and 78: Following the completion of the rev
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Finally, another concern raised rel
Page 81 and 82:
Transfer Pricing developments in th
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Transfer Pricing Perspectives. Octo
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Transfer pricing perspectives: Winds of Change - PwC

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