Global Tax Services
Transfer Pricing
Audit | Tax | Advisory
Transfer Pricing
Transfer pricing encapsulates all aspects of the nature and pricing of international transactions between
related parties. These transactions include:
The provision or receipt of any tangible goods and property
The provision or receipt of any intangible property, including the rights to use intangible property
The provision or receipt of any services
The provision or receipt of any funding or financial support.
International related party transactions are continuing to increase rapidly due to the globalisation of world
trade. Simultaneously, tax authorities are increasing their scrutiny of such transactions in order to protect
their revenue bases, introducing tougher documentation requirements and compliance penalties and
increasing their audit activities. This is particularly so in the Asia Pacific region where the myriad of
increased compliance requirements is being complicated by the adoption of different interpretations of
various transfer pricing issues being taken by the different revenue authorities.
The increased volume and complexity of international related party transactions, along with the increased
scrutiny of such transactions by the revenue authorities is resulting in taxpayers needing to be more diligent
in determining and documenting the pricing of such transactions and managing their regional transfer
pricing position. Taxpayers also need to be coordinated in their compliance efforts as revenue authorities
are increasingly sharing information amongst their treaty networks.
Member firms are driven by a single purpose - building value
through international business for their clients and their people
Crowe Horwath International
Transfer pricing is not a unilateral tax issue. There are two sides to every transaction, and two sets of
revenue authorities (at least) that will scrutinise the outcome of any international related party
transaction.
With 560 offices and 26,250 professionals and staff in more than 100 countries around the world, Crowe
Horwath International is ranked among the top 10 global accounting networks. This means that through
our extensive international network, we can access local tax and transfer pricing specialists to assist us to
review and analyse your international related party transactions. We understand that knowledge of local
tax and transfer pricing requirements is invaluable in ensuring that your transfer pricing position is
managed appropriately.
1
Compliance management and documentation
services
The increased scrutiny of transfer pricing issues by revenue authorities and the associated
penalties for non-compliance with the arm’s length standard means that taxpayers need to
adopt a coordinated and efficient approach to managing their transfer pricing issues across all
of their international operations.
We can assist you to manage your transfer pricing positions either across a range of
jurisdictions or in a single country depending on your requirements and that your transfer
pricing exposures are mitigated.
2
Transfer pricing planning and structuring services
Transfer pricing principles can be applied to assist taxpayers to structure their international
operations in an operational and tax efficient manner. By attributing the performance of functions
and the assumption of operational risks, along with appropriately structuring the rights to use
business assets, taxpayers can structure their international operations in ways that are
operationally and tax efficient, whilst being compliant with the tax and transfer pricing
requirements in each of the relevant jurisdictions.
Our transfer pricing and international tax teams can work with you to ensure that your
international operating structure is appropriate for your business.
Crowe Horwath International
transfer pricing services
3
Dispute management and resolution services
The scrutiny of international related party transactions by revenue authorities can take a
variety of forms. Irrespective of the nature of the review being undertaken, it is important that
the review process is appropriately managed by the taxpayer and that the information
provided is coordinated and controlled to ensure it is consistent with information provided
previously and non-prejudicial in nature.
Knowledge of the local tax and transfer pricing rules and requirements plays a very important
part in managing any revenue authority review. Crowe Horwath International’s transfer pricing
group, along with our international tax network (where required), can help you to manage and
coordinate any transfer pricing investigations being conducted in relation to your or your
related parties’ businesses.
4
Advance pricing agreement services
Advanced pricing agreements (APAs) are effectively transfer pricing binding rulings that
taxpayers can enter into with one or more revenue authorities which agree, in advance, the
manner in which international related party transactions will be priced. APAs are also often used
to remedy prior period transfer pricing issues and disputes. APAs can be entered voluntarily by
taxpayers as a method by which to create certainty of their future transfer pricing positions or as a
means to resolve a transfer pricing dispute with a revenue authority.
Crowe Horwath International’s transfer pricing group can work with you to determine whether the
pursuit of an APA is an appropriate strategy for your business and, if so, can work with you to
secure the APA with the relevant revenue authorities. Our strong international network means
that we can assist you in dealing with the revenue authorities in the other jurisdictions in the APA
process.
Our close network of firms means you have access to true
international expertise across the globe
Other services
Crowe Horwath International’s transfer pricing group can also provide you with prudential reviews,
including transfer pricing risk assessments, FIN 48 analyses and transfer pricing reviews for due
diligence reporting.
We also work with our Corporate Advisory colleagues it assist with the tax structuring aspects of
re-engineering a client’s supply chains and the valuation aspects of the international transfer of
intellectual property.
Our resources
Crowe Horwath International’s transfer pricing group has access to the databases necessary to
provide benchmarking and economic analysis services to our clients, including:
Databases that allow us to undertake the benchmarking necessary to:
♦ review the financial performance of the tested party,
♦ benchmarking the arm’s length amount of any transfers of tangible goods, or
♦ benchmark the provision and receipt of intra-group services.
Databases that enable us to determine arm’s length licensing fees and royalties for the rights to
use and exploit intangible property.
Databases that allow us to determine arm’s length interest rates and guarantee fees in relation to
international related party financing transactions.
Stean Hainsworth
Asian Transfer Pricing Leader
Level 16, 120 Edward Street
Brisbane QLD 4000
Australia
stean.hainsworth@bri.whkhorwath.com.au
+61 7 3233 3486 Tel
+61 408 768 210 Mobile
Poon Yew Hoe
Tax Partner, Malaysia
Level 16 Tower C, Megan Avenue II
12 Jalan Yap Kwan Seng
50450 Kuala Lumpur
poonyh@horwathkl.com
+603 2166 0000 Tel
Sivakumar Saravan
Tax Partner, Singapore
7 Temasek Boulevard, Suntec Tower One
#11-01, Singapore 038987
sivakumar@sg.first-trust.com
+65 6223 7757 Tel
Mark Davies
Tax Associate Principal, New Zealand
72 Trafalgar Street
Nelson
mark.davies@whkwestyates.co.nz
+64 3 548 2139 Tel
Venkataraman Raghavendran
Tax Director, India
# 10, Trust complex, DVG Road,
Basavanagudi,
Bangalore- 560004
vraghavendran@horwathindia.com
91 80 26622751 Tel
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Transfer pricing is not just a compliance
issue. Its principles provide tax and
business planning opportunities to increase
your shareholder value.
Crowe Horwath International’s Asian transfer pricing team is headed by Stean. Stean is a
transfer pricing international tax specialist, responsible for delivering the firms’ transfer
pricing services to clients across Asia. His extensive experience enables him to work with
his clients to develop and implement transfer pricing solutions that are both practical from
a commercial or business perspective, and appropriate to the client’s particular
circumstances. He has written a number of papers and articles on transfer pricing matters
and spoken at many seminars and conferences in New Zealand, USA, Canada and
Australia.
Yew Hoe, Chairman of the International Tax Committee of Crowe Horwath International,
has been in practice for over 26 years. Yew Hoe contributes to the CCH International Tax
Planning Manuals on corporations, and expatriates and migrants which are distributed
worldwide on a subscription basis. Specialising in transfer pricing, international tax, tax
planning, etc, his portfolio of tax clients include multinationals, large corporations and
public listed companies. He serves on the Malaysian Institute of Certified Public
Accountants (MICPA) as a council member and a member of its Tax Practice Committee.
He co-chairs the national Budget Commentary Committee that publishes the annual
Budget Commentary booklet and is often invited to speak at professional seminars on
tax-related issues.
Siva sits as Chairman of Crowe Horwath International’s Asia Pacific Tax Committee and
member of the Crowe Horwath International Tax Committee. He has been involved in
various cross border tax assignments which includes planning optimal cross-border tax
structures, advising Singapore based multinationals on transfer pricing and advising on tax
implications of cross-border management fee charges in countries such China, India,
Indonesia, Malaysia and Thailand. He is the consultant editor of CCH’s Singapore Master
Tax Guide manual and co-authors the CCH Worldwide Business Tax Guide. He is a
member of the Institute of Certified Public Accountants of Singapore and the Singapore
Institute of Arbitrators.
Mark has 18 years of tax experience. He has assisted numerous corporates in
structuring their businesses, and managing both their international and domestic tax
affairs. Mark started his career with the New Zealand Inland Revenue Department (IRD),
dealing primarily with large corporate taxpayers. During his time there, he was also
responsible for audit and tax compliance activity in relation to the international dealings of
one of New Zealand's largest companies.
Venkataraman (VR) has 24 years of professional experience in corporate and personal tax,
international tax, transfer pricing study and audits and assurance services. He has been
advising Indian and international clients in planning and compliance of diverse tax matters.
He also represents clients at the Income tax Department, providing direct experience on
the approach of the Revenue authorities on various tax issues. He has also been involved
in carrying out transfer pricing studies and transfer pricing audits for companies in India in
relation to their cross border transactions with their associates. He is a fellow member of
the Institute of Chartered Accountants of India.
Our Team
Wilson Wang
Tax & Accounting Services Director, China
3903, Jin Mao Tower
88 Century Avenue
Shanghai
wilson.wang@hwintertrust.com.cn
+86 21 5098 8686 Tel
Le Khanh Lam
Tax and Consulting Partner, Vietnam
140 Nguyen Van Thy St.
Da Kao Ward District 1
Ho Chi Minh City
lamle@horwathdtl.com.vn
+ 84 8 827 5026 Tel
Jae Dong Seo
Tax Partner, Korea
9th Floor KCCI Building
45, 4-ga Namdaemun-no, Jung-gu
Seoul 100-743
jdseo@horwath.co.kr
+82-2-3166-641 Tel
Audrey Lin
Tax Director, Taiwan
12F, No. 369, Fu Hsing N. Rd.
Taipei, Taiwan, 10541 , R.O.C.
audrey.lin@horwath.com.tw
+886-2-2718-8686 Tel
Ramon F. Gracia
Managing Partner, Philippines
30/F Burgundy Corporate Tower
252 Sen Gil Puyat Ave, Makati City
rfg@rfgarcia.com
+632 884 2778 Tel
Wilson specialises in transfer pricing, tax structuring on foreign investment in China,
withholding tax and capital gains tax, income tax, capital gains tax and business tax. He is
a distinguished accountant in China with a strong financial background and a broad
knowledge of the P.R.C. legislative systems. He has worked previously as the Chief
Accountant for Baoshan Iron & Steel Corporation, one of the most profitable enterprises in
the world and a “Global 500” company according to Fortune Magazine. Wilson is a
member of China Institute of CPAs.
Lam has over 16 years of experience working with multinational corporations and Vietnam
clientele in all business sectors. He specialises in providing local tax advice and other
compliance issues relating to inbound investment. He has advised many multinational
companies on their investment structuring, entry strategies, foreign investment regulations,
international and local tax planning and compliance. He has also represented various
companies and industries in their representations to local authorities in matters relating to
foreign investment and taxation policies and interpretations. Lam sits on various
professional committees. He is a Certified Public Accountant of Vietnam and holds a Chief
Accountant Certificate by the Ministry of Finance, Vietnam.
Jae Dong has extensive experience in international business and tax consulting for
multinational corporations operation in Korea. With more than 16 years of experience, he
specialises in the area of international tax such as a permanent establishments, transfer
pricing, withholding tax, expatriate payroll tax, stock option taxation, tax audit defense,
restructuring, due diligence and other value-added services for foreign companies intending
to operate or expand business in Korea. Jae Dong is a Korean Certified Public Accountant
(a member of KICPA).
Audrey is a qualified Certified Public Accountant (CPA) as well as a Certified Internal
Accountant (CIA) in both Taiwan and the US. In practice for more than 6 years, Audrey
has extensive experience in tax advisory and tax planning service ranging from corporate
tax, indirect tax, transfer pricing, due diligent exercise to individual tax. In addition, she is
often involved with tax audits and investigations on multinational companies’ local income
or sales taxes. Audrey is also in charge of the development of wealth management,
especially in individual tax and real estate tax planning as well as investment and financial
planning.
Ramon specialises in areas such as financial management and controllership, evaluation,
design and installation of financial and accounting management information policies,
systems and procedures, feasibility and industry studies as well as tax and tax planning. He
is the National Chairman Committee on Professional Development (2007-2008) of the
Philippine Institute of Certified Public Accountants (PICPA) and currently sits on various
professional committees. He speaks regularly on finance-related topics, and is President of
two companies in the Philippines.
Our Team
Wilmar J Sidabutar
Tax Services Partner, Indonesia
Menara Kadin Indonesia
17th Floor, Unit A, B, C
Jl H.R. Rasuna Said Blok X-5, Kav 2 & 3
Jakarta 12950
wilmar.sidabutar@cbaconsulting.co.id
+62 21 2553 5671 Direct
+62 21 2553 5699 Tel
Ajay Ootum Sewraz
Senior Partner, Mauritius
3rd Floor, Ahmod Building
19 Poudriere Street
Port Louis
a.sewraz@sgfinancialservices.com
+230 211 3350 Tel
Abrar S Chaudhury
Tax Partner, Pakistan
25-E Main Market Gulberg-2
Lahore 54660
Pakistan
achaudhury@horwath.com.pk
+92 42 111 111 442 Tel
Saridphol Chompaisal
Tax & Legal Partner, Thailand
Modern Town Building 3rd Floor
87 Sukhumvit 63 (Ekamai 3)
Bangkok
saridphol@bunchikij.com
+662-3929715 to 6 Tel
Mei Ling Yik
Director – Taxation and China Services,
Hong Kong
38/F Central Plaza, 18 Harbour Road,
Wanchai, Hong Kong
meiling.yik@horwathtax.com.hk
+852 2867 0363 Tel
Wilmar specialises in consumer and industrials products and services. He has over 15 years of
experience in providing tax advisory, tax planning and tax audit services to both Indonesian and
foreign companies. He has also extensive experience in tax litigation process, including tax
audit, objection and appealing to the tax court. Wilmar co-authors the CCH International Master
Tax Guide and the Worldwide Business Tax Guide. He is a member of Indonesian Tax
Consultant Association and International Fiscal Association. He also speaks regularly for
professional associations and clients in-house training.
Ajay has over 20 years experience in audit, accounting, tax and providing general financial
advice. He has also been involved in preparing feasibility studies for several projects for
financial institutions as well as companies’ liquidations. He is a fellow of the Chartered
Association of Certified Accountants.
Abrar is a fellow of the Institute of Chartered Accountants of Pakistan (ICAP) and a licensed
tax practitioner by the Tax Bar of Pakistan. He has been in practice for over 12 years and
specializes in tax planning, tax audits and investigations. He has undertaken numerous audits
and tax assignments of large multinational corporations, public quoted companies, private
companies, association and trusts. He co-authors the Tax Memorandum, a handbook
published annually by his firm for clients on the Finance Bill passed by the Government of
Pakistan. He also sits on various professional committees including the Tax and Budget
Planning Committee of the Chamber of Commerce and Technical Advisory Committee
Institute of ICAP.
Saridphol has the experience of being a tax partner for more than 16 years. His experiences
include tax planning for Siemens Westinghouse, Goldman Sache (Thai), Alpla Thailand and
Hopewell Thailand. He also performs tax audit and appeal for several foreign companies doing
businesses in Thailand. Saridphol has several legal qualifications and was admitted to practice
while in the US.
Mei Ling specialises in Hong Kong tax for over 20 years. This includes tax due diligence and
transfer pricing advisory. In addition, Mei Ling has over 15 years experience in handling tax
investigations by the Hong Kong tax authority. Mei Ling has also provided extensive advice to
multinational corporations on taxation and regulatory issues in China. She handles inbound tax
and provides business advisory for foreign companies investing in both Hong Kong and China.
www.crowehorwathinternational.com