The second part of the joint initiative of the WU Global Tax Policy Center and the WU Transfer Pricing Center on “New Technologies to Transform the Approach to Transfer Pricing” (online, April 20, 2021) has been dedicated to transfer pricing audits and dispute management.
The presentations of the topic were given by Paolo V. Barbantini (DDG, Italian Revenue Agency) and Jorge Jambeiro Filho (Fiscal Auditor, Receita Federal do Brazil). Panellists of this second part of the conference were Nick Davies (Technology Lead, HMRC), Mauro Faggion (TP Expert DG TAXUD, European Commission), Airi Jansen-Uueda (Chief Risk Officer, Estonian Tax and Customs Board), Ryan Mc Mahon (Financial Services TP Lead, HMRC), Saidimu Terra (Commissioner Intelligence and Strategic Operations, KRA), and Raul Zambrano (Director of Technical Assistance and Technology, CIAT).
The speakers emphasized the importance of technology to lift up the level of understanding transfer pricing fact pattern, income allocation between related parties, and improving efficiency of the tax process. Also, the volume of data availability allows a more fact-specific analysis of the tax case. The risk assessment of tax base allocation is improved by tax technologies, according to speakers of the panel.
The presentation of the representative of the Brazil government showed interesting insights on the deployment of algorithm and data analysis tools. Similarly, the Italian representative showed key features of how technology can improve taxation and auditing.
The role of human beings in the process of data analysis was being highlighted by most speakers, too, with the notification that keeping the arm’s length principle viable will continue to have subjective decisions in the arena of taxing profit of related parties of multinational firms.
The GTP® TEAM is being confirmed by such positions in its process of dealing with technology, data, and analysis tools on transfer pricing management.
For more information on transfer pricing solutions, you may visit www.GlobalTransferPricing.com.