New database addresses growing challenges in global tax compliance for multinationals
NEW YORK, Nov. 12, 2013 /CNW/ - In response to the growing number of transfer pricing rules and reporting requirements established by tax authorities around the world, Thomson Reuters announces the new Worldwide Private Company Database from ONESOURCE Transfer Pricing.
This new database, designed specifically for transfer pricing professionals, provides the transparent, detailed data global firms need to defend themselves in today's complex tax environment.
Transfer pricing is one of the most significant issues global organizations and tax authorities face. Audits are on the rise, and the cost of noncompliance is both financial and reputational. Add the fact that the average audit takes 540 days, and the magnitude of transfer pricing risks becomes clear.
As tax authorities introduce additional rules and require corporations to provide detailed documentation to defend their policies, multinationals must be certain they meet the requirements of the arm's length standard – and provide the documentation to prove it. This new product from Thomson Reuters addresses this challenge.
"Tax authorities are no longer satisfied with weak documentation and comparables that don't take local trade into account," said Joe Harpaz, managing director of corporate tax for the Tax & Accounting business of Thomson Reuters. "Governments are demanding clear documentation with regional comparables to support transfer pricing methods."
By building relationships with tax authorities, corporations, and service providers, Thomson Reuters has identified the information transfer pricing professionals need to reduce risk and comply with global transfer pricing regulations.
This new solution provides private company information compiled from a global network of local data providers — and delivers country-specific financial data and standardized financial line-items for complete transparency on how the data should be applied. This fills comparables gaps in regions where public data is limited and allows users to drill into the original data source for clarity and transparency. This kind of data is a key component of reducing risk and avoiding an extended audit.
"Using public local data is challenging in these markets, as there are only a limited number of public records available," said Brian Tully, vice president and head of transfer pricing for ONESOURCE at Thomson Reuters. "Finding a good comparables set is critical to achieving the highest level of practical comparability."
For more information on ONESOURCE Transfer Pricing, visit tax.thomsonreuters.com/transfer-pricing.
Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. For more information, go to www.thomsonreuters.com.
SOURCE: Thomson Reuters
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Lisa Travnik, Public Relations, +1-212-404-8689, email@example.com