83 Transfer Pricing Success Criteria

What is involved in Transfer Pricing

Find out what the related areas are that Transfer Pricing connects with, associates with, correlates with or affects, and which require thought, deliberation, analysis, review and discussion. This unique checklist stands out in a sense that it is not per-se designed to give answers, but to engage the reader and lay out a Transfer Pricing thinking-frame.

How far is your company on its Transfer Pricing journey?

Take this short survey to gauge your organization’s progress toward Transfer Pricing leadership. Learn your strongest and weakest areas, and what you can do now to create a strategy that delivers results.

To address the criteria in this checklist for your organization, extensive selected resources are provided for sources of further research and information.

Start the Checklist

Below you will find a quick checklist designed to help you think about which Transfer Pricing related domains to cover and 83 essential critical questions to check off in that domain.

The following domains are covered:

Transfer Pricing, Accounting system, Amicus curiae, Arm’s length principle, Business development, Corporate tax, Customs duties, EU Joint Transfer Pricing Forum, Economies of scale, Ernst & Young, Formulary apportionment, Global Financial Integrity, Import quotas, Internal Revenue Service, Marginal revenue, Marginal utility, Multinational corporation, Nonrecognition provisions, organization for Economic Co-operation and Development, Performance measurement, Profit maximization, Transactional net margin method, U.S. Supreme Court, Value added tax, Withholding tax:

Transfer Pricing Critical Criteria:

Consider Transfer Pricing visions and catalog Transfer Pricing activities.

– What are your current levels and trends in key measures or indicators of Transfer Pricing product and process performance that are important to and directly serve your customers? how do these results compare with the performance of your competitors and other organizations with similar offerings?

– Are transfer pricing disputes about the facts, the applicable law and/or the economics?

– Which factors determine whether a firm should be decentralized or centralized?

– Why and how are support department costs allocated to operating departments?

– What factors are conducive to maintaining a reputation for nonintervention?

– Which costs does the firm deduct in measuring divisional operating costs?

– What types of transfer prices are used, and why are such prices used?

– What is the min. & max. transfer price if BUY and SUPPLY negotiate?

– What are some advantages and disadvantages of decentralization?

– How are decentralization and responsibility accounting related?

– How are the subunit s indirect costs allocated to products?

– Should the chosen fixed-cost rates be actual or budgeted?

– How can we measure profitablity for our customers?

– How much trading flexibility do the units have?

– Does the Marginalist Approach work?

– How does the firm measure revenues?

– Why are Transfer Pricing skills important?

– Who sets the transfer prices?

– Are they worth the trouble?

Accounting system Critical Criteria:

Mix Accounting system tasks and correct better engagement with Accounting system results.

– How do your measurements capture actionable Transfer Pricing information for use in exceeding your customers expectations and securing your customers engagement?

– How do we ensure that implementations of Transfer Pricing products are done in a way that ensures safety?

– Do all accounting systems require using debits and credits?

– Who sets the Transfer Pricing standards?

Amicus curiae Critical Criteria:

Judge Amicus curiae governance and oversee implementation of Amicus curiae.

– Is Transfer Pricing dependent on the successful delivery of a current project?

– What are the long-term Transfer Pricing goals?

– Is Transfer Pricing Required?

Arm’s length principle Critical Criteria:

Have a session on Arm’s length principle outcomes and proactively manage Arm’s length principle risks.

– What are the barriers to increased Transfer Pricing production?

– How can skill-level changes improve Transfer Pricing?

Business development Critical Criteria:

Graph Business development decisions and adopt an insight outlook.

– In the case of a Transfer Pricing project, the criteria for the audit derive from implementation objectives. an audit of a Transfer Pricing project involves assessing whether the recommendations outlined for implementation have been met. in other words, can we track that any Transfer Pricing project is implemented as planned, and is it working?

– Marketing budgets are tighter, consumers are more skeptical, and social media has changed forever the way we talk about Transfer Pricing. How do we gain traction?

– How will we insure seamless interoperability of Transfer Pricing moving forward?

Corporate tax Critical Criteria:

Generalize Corporate tax decisions and find out what it really means.

– What tools do you use once you have decided on a Transfer Pricing strategy and more importantly how do you choose?

– How to deal with Transfer Pricing Changes?

Customs duties Critical Criteria:

Consult on Customs duties strategies and ask what if.

– How do you determine the key elements that affect Transfer Pricing workforce satisfaction? how are these elements determined for different workforce groups and segments?

EU Joint Transfer Pricing Forum Critical Criteria:

Analyze EU Joint Transfer Pricing Forum risks and probe the present value of growth of EU Joint Transfer Pricing Forum.

– Are there any disadvantages to implementing Transfer Pricing? There might be some that are less obvious?

– Is Transfer Pricing Realistic, or are you setting yourself up for failure?

– Is there any existing Transfer Pricing governance structure?

Economies of scale Critical Criteria:

Model after Economies of scale projects and track iterative Economies of scale results.

– Among the Transfer Pricing product and service cost to be estimated, which is considered hardest to estimate?

Ernst & Young Critical Criteria:

Brainstorm over Ernst & Young decisions and look at it backwards.

– Who is the main stakeholder, with ultimate responsibility for driving Transfer Pricing forward?

– Who are the people involved in developing and implementing Transfer Pricing?

Formulary apportionment Critical Criteria:

Ventilate your thoughts about Formulary apportionment tactics and customize techniques for implementing Formulary apportionment controls.

– What are specific Transfer Pricing Rules to follow?

– What about Transfer Pricing Analysis of results?

– What are our Transfer Pricing Processes?

Global Financial Integrity Critical Criteria:

Meet over Global Financial Integrity outcomes and look at it backwards.

– Can we add value to the current Transfer Pricing decision-making process (largely qualitative) by incorporating uncertainty modeling (more quantitative)?

– What will be the consequences to the business (financial, reputation etc) if Transfer Pricing does not go ahead or fails to deliver the objectives?

Import quotas Critical Criteria:

Examine Import quotas leadership and know what your objective is.

– What is the total cost related to deploying Transfer Pricing, including any consulting or professional services?

– Do several people in different organizational units assist with the Transfer Pricing process?

Internal Revenue Service Critical Criteria:

Illustrate Internal Revenue Service visions and mentor Internal Revenue Service customer orientation.

– Think about the kind of project structure that would be appropriate for your Transfer Pricing project. should it be formal and complex, or can it be less formal and relatively simple?

– What are our needs in relation to Transfer Pricing skills, labor, equipment, and markets?

– What are the usability implications of Transfer Pricing actions?

Marginal revenue Critical Criteria:

Devise Marginal revenue projects and work towards be a leading Marginal revenue expert.

– What are your key performance measures or indicators and in-process measures for the control and improvement of your Transfer Pricing processes?

– Does Transfer Pricing create potential expectations in other areas that need to be recognized and considered?

Marginal utility Critical Criteria:

Guide Marginal utility goals and clarify ways to gain access to competitive Marginal utility services.

– Will Transfer Pricing have an impact on current business continuity, disaster recovery processes and/or infrastructure?

Multinational corporation Critical Criteria:

Be clear about Multinational corporation leadership and find out what it really means.

– Who is responsible for ensuring appropriate resources (time, people and money) are allocated to Transfer Pricing?

– Does Transfer Pricing analysis show the relationships among important Transfer Pricing factors?

Nonrecognition provisions Critical Criteria:

Win new insights about Nonrecognition provisions failures and budget for Nonrecognition provisions challenges.

– Is the scope of Transfer Pricing defined?

organization for Economic Co-operation and Development Critical Criteria:

Weigh in on organization for Economic Co-operation and Development projects and document what potential organization for Economic Co-operation and Development megatrends could make our business model obsolete.

– Why is it important to have senior management support for a Transfer Pricing project?

– What is the source of the strategies for Transfer Pricing strengthening and reform?

Performance measurement Critical Criteria:

Value Performance measurement goals and learn.

– Record-keeping requirements flow from the records needed as inputs, outputs, controls and for transformation of a Transfer Pricing process. ask yourself: are the records needed as inputs to the Transfer Pricing process available?

– Constantly communicate the new direction to staff. HR must rapidly readjust organizational charts, job descriptions, workflow processes, salary levels, performance measurement, etc. Why?

– Is there a Transfer Pricing Communication plan covering who needs to get what information when?

– Performance measurement system design: Should process based approaches be adopted?

– The performance measurement revolution: why now and what next?

– Are accountability and ownership for Transfer Pricing clearly defined?

Profit maximization Critical Criteria:

Communicate about Profit maximization results and test out new things.

– How do we Identify specific Transfer Pricing investment and emerging trends?

Transactional net margin method Critical Criteria:

Pay attention to Transactional net margin method leadership and don’t overlook the obvious.

– Are there Transfer Pricing problems defined?

U.S. Supreme Court Critical Criteria:

Dissect U.S. Supreme Court outcomes and explain and analyze the challenges of U.S. Supreme Court.

– How do we make it meaningful in connecting Transfer Pricing with what users do day-to-day?

– Do you monitor the effectiveness of your Transfer Pricing activities?

Value added tax Critical Criteria:

Consult on Value added tax strategies and point out improvements in Value added tax.

– Will Transfer Pricing deliverables need to be tested and, if so, by whom?

– What threat is Transfer Pricing addressing?

– What is Effective Transfer Pricing?

Withholding tax Critical Criteria:

Face Withholding tax decisions and explore and align the progress in Withholding tax.

– Does Transfer Pricing analysis isolate the fundamental causes of problems?

Conclusion:

This quick readiness checklist is a selected resource to help you move forward. Learn more about how to achieve comprehensive insights with the Transfer Pricing Self Assessment:

store.theartofservice.com/Transfer-Pricing-Complete-Self-Assessment/

Author: Gerard Blokdijk

CEO at The Art of Service | theartofservice.com

gerard.blokdijk@theartofservice.com

www.linkedin.com/in/gerardblokdijk

Gerard is the CEO at The Art of Service. He has been providing information technology insights, talks, tools and products to organizations in a wide range of industries for over 25 years. Gerard is a widely recognized and respected information expert. Gerard founded The Art of Service consulting business in 2000. Gerard has authored numerous published books to date.

External links:

To address the criteria in this checklist, these selected resources are provided for sources of further research and information:

Transfer Pricing External links:

Transfer Pricing – NERA
www.nera.com/practice-areas/transfer-pricing.html

Custom Transfer Pricing | Transfer Express
transferexpress.com/education/product-pricing

Transfer Pricing | Deloitte | Tax
www2.deloitte.com/us/en/pages/tax/topics/transfer-pricing.html

Accounting system External links:

Energy Accounting System (EAS)
mean.eas.mcgware.com

[PDF]Accounting System Requirements – DCAA
www.dcaa.mil/Content/Documents/smallbusiness/Accounting_System.pdf

Niagawan – Accounting System for Non-Accountants
app.niagawan.com

Amicus curiae External links:

Amicus Curiae – Merriam-Webster
www.merriam-webster.com/dictionary/amicus curiae

Business development External links:

Business Development | Delta Title Corporation
www.deltatitlecorp.com/about-us/business-development

Title Business Development Jobs, Employment | Indeed.com
www.indeed.com/q-Title-Business-Development-jobs.html

The Difference Between Sales and Business Development
andrewdumont.me/the-difference-between-sales-and-business-development

Corporate tax External links:

Who Benefits From Corporate Tax Cut? – FactCheck.org
www.factcheck.org/2017/09/benefits-corporate-tax-cut

Customs duties External links:

Customs Duties | Web Source Limited
shipwebsource.com/customs.php

Philippine Customs Duties and Taxes – Home | Facebook
www.facebook.com/Philippine.Customs.Duties.and.Taxes

EU Joint Transfer Pricing Forum External links:

[PDF]EU JOINT TRANSFER PRICING FORUM
www.transferpricing.com/pdf/EU-Centralised Services.pdf

Annual review: EU Joint Transfer Pricing Forum | Bloomberg …
www.bna.com/annual-review-eu-n17179881468

Economies of scale External links:

Economies of scale Flashcards | Quizlet
quizlet.com/95702/economies-of-scale-flash-cards

What Are Economies Of Scale? – investopedia.com
www.investopedia.com/insights/what-are-economies-of-scale

Economies of scale and scope | The Economist
www.economist.com/node/12446567

Ernst & Young External links:

Ernst & Young Global Careers – ey.taleo.net
ey.taleo.net/careersection/gexp01/moresearch.ftl

Formulary apportionment External links:

What is FORMULARY APPORTIONMENT? What does …
www.youtube.com/watch?v=n_9iBNJPMBs

Global Financial Integrity External links:

Global Financial Integrity
action.gfintegrity.org/p/dia/action3/common/public/?action_KEY=15619

About « Global Financial Integrity
www.gfintegrity.org/about

Global Financial Integrity – Home | Facebook
www.facebook.com/GlobalFinancialIntegrity

Import quotas External links:

Import Quotas legal definition of Import Quotas
legal-dictionary.thefreedictionary.com/Import+Quotas

Internal Revenue Service External links:

Internal Revenue Service News
www.cnbc.com/irs

Marginal revenue External links:

How to Calculate Marginal Revenue | Chron.com
smallbusiness.chron.com/calculate-marginal-revenue-3480.html

How to Calculate Marginal Revenue: 11 Steps (with Pictures)
www.wikihow.com/Calculate-Marginal-Revenue

Marginal Revenue – MR – Investopedia
www.investopedia.com/terms/m/marginal-revenue-mr.asp

Marginal utility External links:

Marginal utility | economics | Britannica.com
www.britannica.com/topic/marginal-utility

Marginal Utility Level 3 Flashcards | Quizlet
quizlet.com/12087297/marginal-utility-level-3-flash-cards

How to Calculate Marginal Utility: 11 Steps (with Pictures)
www.wikihow.com/Calculate-Marginal-Utility

Multinational corporation External links:

Multinational corporation | business | Britannica.com
www.britannica.com/topic/multinational-corporation

Multinational Corporation – MNC – Investopedia
investopedia.com/terms/m/multinationalcorporation.asp

Multinational Corporation – MNC
www.investopedia.com/terms/m/multinationalcorporation.asp

organization for Economic Co-operation and Development External links:

Organization for Economic Co-operation and Development – …
www.munuc.org/committees/oecd

Performance measurement External links:

Performance Measurement Dashboard | City of Tampa
www.tampagov.net/metrics

Performance measurement
Performance measurement is the process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component. It can involve studying processes/strategies within organizations, or studying engineering processes/jjparameters/phenomena, to see whether output are in line with what was intended or should have been achieved.

Performance Measurement | Joint Commission
www.jointcommission.org/performance_measurement.aspx

Profit maximization External links:

Profit Maximization Flashcards | Quizlet
quizlet.com/32400596/profit-maximization-flash-cards

Profit Maximization – Perfect Competition
www.csun.edu/~hceco008/c8b.htm

What is Profit Maximization? definition and meaning
www.investorwords.com/7690/profit_maximization.html

Value added tax External links:

What is value added tax – Answers.com
www.answers.com/Q/What_is_value_added_tax

VAT Per Country | Value Added Tax Rates By Country | USCIB
www.uscib.org/valueadded-taxes-vat-ud-1676

Withholding tax External links:

Withholding Tax – Mississippi
www.dor.ms.gov/Business/Pages/Withholding-Tax.aspx

Arizona Withholding Tax
www.azdor.gov/Business/WithholdingTax.aspx

Withholding tax
www.tax.ny.gov/bus/wt/wtidx.htm

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