Corporate governance gives an interesting perspective to study cross boarder transfer pricing arrangements. In the current transfer pricing scenario, TP has become the key topic for the board room discussions. This article highlights the importance of TP from corporate goverance perspective

1. International Taxation Vol. 13 October 2015 56
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Background
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2. OC@N@ DIGP?@ DON NCM@CJG?@MN

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8. OMINKM@IT

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11. OC@ NCM@CJG?@MN
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12. OC@ JMKJMO@ BJQ@MII@ KMOD@N CQ@ @QJGQ@? DI M@NKJIN@ OJ NPC
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13. OC@ BJJ? BJQ@MII@ KMOD@ DN HJM@ JHHDOO@?
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14. M@KPOODJI JM =PNDI@NN QGP@N

15. OMPNORJMOCDI@NN ?@K@I?N
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OS NMPODIT MJNN OC@ BGJ=@

16. OS CN =@JH@ OC@ HEJM MDNF M@
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17. International Taxation Vol. 13 October 2015 57
@IO@MKMDN@N P@ OJ NDBIDADIO HJPIO JA OS
JNON MDNDIB AMJH OMINA@M KMDDIB ?EPNOH@ION

18. OMINA@M KMDDIB CN =@JH@ JI@ JA OC@ F@T
OJKDN DI OC@ =JM? MJJH ?DNPNNDJI 'I OCDN
MODG@

19. ' CQ@ ??M@NN@? OMINA@M KMDDIB MDNFN
AMJH JMKJMO@ BJQ@MII@ K@MNK@ODQ@
Tax Risks in Transfer Pricing
2MINA@M .MDDIB DN I MO I? IJO I @SO
ND@I@ 2C@M@AJM@

20. ?DAA@M@IO NOF@CJG?@MN JPG?
CQ@ ?DAA@M@IO QD@RN AJM OC@ QMDJPN OMINA@M
KMDDIB DNNP@N 2C@N@ ?DAA@M@IO QD@RN I
G@? OJ ?DNKPO@ JM ?@=O@ RC@I DO JH@N OJ
D?@IODADODJI JA OMINA@M KMDDIB MDNFN
2C@ F@T MDNF DI OMINA@M KMDDIB DN OC@ ?@QDODJI
JA OS KJGDD@N RDOC =PNDI@NN M@GDOD@N 2MINA@M
.MDDIB KMDIDKG@N ?@HI? AJM DIO@BMODJI JA
OS KJGDD@N RDOC =PNDI@NN I? ADII@ M@GDOD@N
1DI@ OMINA@M KMDDIB DN IJO EPNO KJNO
OS
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21. IT NJMO JA OMINA@M KMDDIB
MMIB@H@IO NCJPG? =@ K@MAJMH@? JI M@G
ODH@ =NDN 2C@ -#!_N N@ #MJNDJI I?
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OC@ OMINA@M KMDDIB JPOJH@ NCJPG? =@ DI
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22. OC@
APIODJIN MDNF K@MAJMH@? =T @IODOD@N I?
OC@ @JIJHD JPOJH@N JA OC@ NH@ NCJPG?
=@ GDBI@? 2CDN KMDIDKG@ OPGGT NPKKJMON
OC@ ?JOMDI@ JA ^1P=NOI@ JQ@M AJMH_
2C@ AJGGJRDIB DN OC@ DGGPNOMODQ@ GDNO JA N@IMDJN
RC@M@ OMINA@M KMDDIB MDNF HT MDN@
PNDI@NN M@GDOT ?DAA@M@IO AMJH DIO@M
BMJPK
JIOMON
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NDN DN IJO N K@M OC@DM QGP@ M@ODJI
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JA AJM@DBI KM@IO JHKIT 2C@ 'I?DI
JHKIT DN @IBB@? DI HIPAOPMDIB JA
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AJM 0

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ODQDOD@N JR@Q@M

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JHKIT N ^JIOMO
HIPAOPM@M_ I?
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25. OC@ APIODJIN K@MAJMH@? =T
OC@ 'I?DI @IODOT M@ IJO FDI OJ JIOMO
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26. OC@M@ HT =@
OS MDNF JI JPIO JA NPC CMO@MDUODJI
I? OC@ M@HPI@MODJI HJ?@G
Managing Transfer Pricing Risk
$MJH JMKJMO@ BJQ@MII@ K@MNK@ODQ@

27. DO RJPG? =@ DHKJMOIO OJ HIB@ OMINA@M
KMDDIB MDNFN DI ?QI@ JA IT JIOMJQ@MNT
2C@ HIB@H@IO JA JHKIT NCJPG? ?JKO
?@A@INDQ@ H@NPM@N I? @NO=GDNC JINDNO@IO
OMINA@M KMDDIB KMOD@N RJMG?RD?@

28. RCDC
HT DIGP?@ HDIODIDIB MJ=PNO OMINA@M
KMDDIB ?JPH@IOODJI

29. GDBIH@IO =@OR@@I
OMINA@M KMDDIB KJGDD@N I? =PNDI@NN M@GDOD@N

30. KMJK@M @S@PODJI JA DIO@M
JHKIT BM@@H@ION

31. HDIODIDIB MJ=PNO M@JM?N AJM DIO@M
JHKIT
OMINODJIN

32. M@BPGM M@QD@R JA OMINA@M KMDDIB
MMIB@H@ION AMJH MH_N G@IBOC K@MNK@ODQ@
2C@M@ I GNJ =@ KMJODQ@ H@NPM@N NPC
N KKGTDIB AJM ?QI@ .MDDIB BM@@H@IO
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33. OS MDNF HIB@H@IO
KJGDT I GNJ =@ DHKG@H@IO@? 2C@ JHKIT_N
JQ@MGG OS MDNF HIB@H@IO KJGDT NCJPG?
=@ ?DNPNN@? HJIB OC@ =JM? I? ADIGDU@?
2C@ OS MDNF HIB@H@IO KJGDT I C@GK DI
PI?@MNOI?DIB OC@ OS I? OMINA@M KMDDIB
DNNP@N DI @ND@M HII@M I? RDOC OC@ C@GK JA
DO

34. HIB@H@IO I OF@ KMJ
ODQ@ ?@DNDJI
JI IT NJMO JA OMINA@M KMDDIB MDNF JM DNNP@
$JM AMHDIB @AA@ODQ@ OMINA@M KMDDIB KJGDD@N

35. OC@ HIB@H@IO JA IT JHKIT NCJPG?
INR@M OC@ AJGGJRDIB DGGPNOMODQ@ LP@NODJI DI
M@GODJI OJ OC@DM OMINA@M KMDDIB MMIB@H@ION
5C@OC@M TJPM OMINA@M KMDDIB KJGDT DN
OS @AADD@IO

36. International Taxation Vol. 13 October 2015 58
5C@OC@M OC@ OMINA@M KMDDIB HJ?@G
DN DI GDI@ RDOC OC@ APIODJIN I? MDNF
K@MAJMH@?
Q@ TJP JHKPO@? OC@ MH_N G@IBOC
KMDDIB JA TJPM OMINA@M KMDDIB M
MIB@H@IO
Q@ TJP HDIODI@? KKMJKMDO@ ?JP
H@IOODJI DI NPKKJMO JA TJPM OMINA@M
KMDDIB KJGDT
J TJP AJM@N@@ IT JIOMJQ@MNT DI TJPM
PMM@IO OMINA@M KMDDIB MMIB@H@IO

37. ?J TJP CQ@ IT OS MDNF HIB@H@IO
KJGDT DI KG@
J TJP CQ@ DIO@M
JHKIT BM@@H@IO
DI KG@
Conclusion Way Forward
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38. OMINA@M
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OMINA@M KMDDIB KJGDD@N M@ =@I@ADDG AJM OC@
JQ@MGG NPKKGT CDI JM?DIBGT

39. OMINA@M
KMDDIB NCJPG? IJO =@ ?@GO DI M@Q@MN@
H@CIDNH

40. D@ OMINA@M KMDDIB KJGDD@N NCJPG?
IJO =@ AMH@? JIND?@MDIB JIGT OC@ KJO@IODG
OS @SKJNPM@
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RDOC OC@ =PNDI@NN M@GDOD@N I? OC@ KMDDIB
JA OC@ OMINA@M KMDDIB MMIB@H@ION NCJPG?
=@ DI GDI@ RDOC OC@ OPG QGP@ M@ODJIN =T
OC@ M@GO@? KMOD@N JA OC@ ND? MMIB@H@ION
#AA@ODQ@ OMINA@M KMDDIB KJGDD@N C@GK OC@
HIB@H@IO OJ OF@ MPDG ?@DNDJIN DI
?QI@ JA IT JIOMJQ@MNT RCDC JPG? C@GK
DI M@?PDIB OMINA@M KMDDIB ?DNKPO@N
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