Transfer Pricing in the Consumer Goods Manufacturing and Distribution Sector
Transfer Pricing in the Consumer Goods Manufacturing and Distribution Sector
Description
We worked with a leading company in the manufacturing and distribution of consumer goods sector. The company had a global network of manufacturing and distribution centers and faced challenges in aligning transfer pricing with regulatory frameworks and achieving efficient transfer pricing management in all entities.
Solution
We conducted a comprehensive analysis of the company’s business model, identified key aspects of transfer pricing, and proposed optimized strategies. Utilizing the TP Catalyst database allowed us to perform benchmarking analyses and comparisons with competitors. We adjusted the transfer pricing structure, improved transfer pricing documentation, and provided guidelines for applying appropriate cost allocation methods.
Results
Implementing our recommendations resulted in the alignment of transfer pricing with regulatory frameworks, reduced risk of tax disputes, and increased efficiency in managing transfer pricing. The company achieved transparency and consistency in the application of transfer pricing across its global network of entities, resulting in reduced tax risks and optimized business processes.
