Transfer Pricing
SJ Grant Thornton
Malaysia
Audit - Tax - Advisory
© 2013 SJ Grant Thornton. All rights reserved.
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Transfer Pricing
Transfer Pricing Development in Malaysia
Transfer Pricing documentation is central to the process of justifying and explaining the pricing of both local and cross-border transactions. A taxpayer should
prepare and maintain transfer pricing documentation to place itself in the position where it can readily demonstrate to the Inland Revenue Board (IRB) that its
transfer prices are consistent with the arm’s length principle. If a taxpayer’s documentation inadequately explains why its transfer prices are considered to be
consistent with the arm’s length principle, it is more likely that the IRB will audit those transfer prices in detail. The lack of adequate documentation may also
make it difficult for the taxpayer to rebut an alternative arm’s length transfer price proposed by the IRB and is likely to result in significant levels of penalties in
the event of an adjustment to the taxable income.
With the introduction of Section 140A in the Income Tax Act 1967 in 2009, the passing of the Income Tax (Transfer Pricing) Rules 2012 and followed by the
issuance of the new Transfer Pricing Guidelines both in 2012, corporate Malaysia will undoubtedly see increased Transfer Pricing audits being undertaken by
the IRB in the coming years. This is evidenced by the establishment of the Multinational Tax Department in the IRB as well as the various Transfer Pricing
trainings and seminars conducted for IRB auditors.
How does Transfer Pricing impact your daily business?
The preparation of comtemporaneous Transfer Pricing documentation is often perceived by taxpayers as troublesome, costly and have limited value-add to
their business. However, with the introduction of these new legal requirements, taxpayers should give special attention to this matter to mitigate the risks
of pricing adjustments, double taxation, inefficient tax planning and penalties. Preparing contemporaneous documentation should not be viewed as to only
comply with legal obligations, but also as an effective tax and risk management tool.
© 2013 SJ Grant Thornton. All rights reserved.
Transfer Pricing
Our Services
Grant Thornton’s Transfer Pricing specialists can tailor their approach to a taxpayer’s specific needs, including :
Transfer Pricing Documentation
A taxpayer is required to prepare contemporaneous Transfer Pricing documentation pursuant to Paragraph 25.4 of the Transfer Pricing
Guidelines 2012.
Appropriately prepared documentation will help taxpayers to manage their tax risks, reduce the time spent on compliance and ensure
that intercompany pricing policies are consistent with business practice. Grant Thornton is focused on bringing various benefits from the
documentation process to taxpayers, including reduced tax risks (e.g. double taxation, penalties and audit adjustments), improved control and
risk management, reduced compliance costs and less disruption to business operations.
Transfer Pricing Risk Assessment
A risk assessment is a process to evaluate the existing transfer pricing practice, identify potential risks and formulate an
appropriate action plan to mitigate such risks. Taxpayers who do not have any transfer pricing policy or with whose actual
financial results deviate significantly from the policy are encouraged to take this important first step towards implementing a
tax efficient transfer pricing policy and mitigating transfer pricing audit risk.
This is a cost-effective solution for any enterprise seeking to understand the extent of its Transfer Pricing risk. Our Transfer
Pricing specialists will review the taxpayers’ transfer pricing position (i.e. structure, transactions and transfer pricing policies) to
assess their exposure and develop options for managing and mitigating this risk.
© 2013 SJ Grant Thornton. All rights reserved.
Transfer Pricing
Our Services (cont’d)
Benchmarking Analysis
A benchmarking analysis measures prices or profit level indicators for specific transactions to determine an appropriate arm’s length
range. Benchmarking is an ideal solution for related parties that do not require full Transfer Pricing documentation, but require
guidance on the transfer prices appropriate under the Transfer Pricing Guidelines 2012.
A benchmarking analysis conducted by Grant Thornton’s Transfer Pricing specialists will include determination of arm’s length
range of price or profit levels through a comparability search on a leading commercial database.
Dispute Resolution
Dispute resolution is a comprehensive process that supports the taxpayer under Transfer Pricing audit, whereby an adjustment
to the transfer price is anticipated or ongoing litigation is avoidable.
Our Transfer Pricing specialists will represent the taxpayer to negotiate with the IRB, formulate effective defence
strategies, quantify the potential transfer pricing adjustments and minimise the adjustments through technical
arguments.
© 2013 SJ Grant Thornton. All rights reserved.
Transfer Pricing
Committed to working with you
Transfer pricing is consistently rated as the most challenging tax issue faced by multinational enterprises operating in the Asia Pacific region and around the world.
Grant Thornton’s Transfer Pricing specialists provide comprehensive solutions tailored to your needs, taking business objectives and the exact nature of the
transactions into consideration. Our relevant experience, as set out below, summed up why we are uniquely positioned to support you.
We will always strive to exceed your expectations
We firmly believe that Grant Thornton has the ability to exceed expectations and provide the service and value for money
our clients should expect from their professional advisor. We set ourselves apart from other firms by adopting a truly
Partner-led approach whilst still maintaining competitive and sustainable fee arrangements.
Full service offering
As a full service accounting firm, we are able to offer a complete audit, tax and advisory services including financial due diligence,
management and operational audit, flotations, mergers and acquisitions, financial modelling, advising on private and public sector
financing, tax advisory services, tax incentive applications, etc.
Global strength
With member firms in over 100 countries, we are able to draw on tax and transfer pricing specialists throughout the world to collaborate and provide a ‘holistic’ solution to your business needs.
Commercial approach
Our practitioners bring to each engagement a range of experience in providing corporate and strategic advice to our clients. The
insights gained through this experience allows us to bring a commercial approach to each assignment, whilst still maintaining the
highest levels of technical rigour.
© 2013 SJ Grant Thornton. All rights reserved.
Transfer Pricing
A solid Transfer Pricing Team
We have a highly experienced partner and director led team to support you.
Jason Casas
Partner
T: +603 2692 4022
E: jasoncasas@gt.com.my
Jason Casas is the Partner who manages the provision of all Grant Thornton Transfer Pricing related services in Malaysia as well as in the Asia Pacific region.
Jason is a Transfer Pricing economist with over 13 years of experience serving clients in Asia, Europe and North America. He has extensive knowledge in managing transfer pricing risk and
has successfully advised numerous multinational companies on using transfer pricing to align operational and tax strategies. He has vast experience preparing Transfer Pricing documentation
for compliance, audit defence, commercial justification and strategic planning purposes.
In addition, Jason has significant experience assisting clients with the processes of Australian, Canadian and some European tax authorities, including Transfer Pricing record reviews and
audits, and negotiating Advance Pricing Arrangements. Richard Bao
Director
T: +603 2692 4022
E: richardbao@gt.com.my
Richard Bao is the Director of the Transfer Pricing Division. started his career in 2003 as a transfer pricing specialist with one Big Four firm in China. Ever since, he has been participating in a
wide range of transfer pricing assignments, including planning, risk assessment, controversy management, documentation, APA and etc.
Richard has served more than 200 clients, a majority of which are the Chinese affiliates of multinational companies listed on Fortune 500. The covered industries include electronics,
chemicals, steel, IT, agriculture, F&B, ocean liner, public utility, finance and banking, outsourcing services and etc. He is particularly experienced in controversy management, supporting his
clients in Shanghai, Jiangsu and Zhejiang on transfer pricing audit defense and negotiation with tax authorities.
Richard graduated as a Bachelor of Arts from the Shanghai International Studies University. He is a tri-lingual speaker of Chinese, English and French.
Seah Siew Yun
Senior Executive Director
T: +603 2692 4022
E: seah@gt.com.my
Seah Siew Yun is Senior Executive Director who oversees the Tax Compliance & Advisory Department.
She has 25 years of experience in tax compliance and advisory work. She handles both local and international companies covering industries like manufacturing, property development,
agriculture, shipping, mining, hotels, operational headquarters, trust, trade and others. Recognising the changes in local tax laws, Siew Yun has undertaken the responsibility to assist and advise
clients on the role of rulings, group structure planning, issue in tax incentives, governing bodies, expatriate tax planning and other trends in taxation.
In her personal capacity, she has contributed to the Firm’s in-house tax training, seminar and motivation of staff for the growth of the organisation as a whole. Siew Yun is a licensed Tax
Agent under Section 153(3) of the Income Tax Act 1967 and the council member of the Chartered Tax Institute of Malaysia (CTIM). She is also the CPD Chairman of CTIM, Head of the
Compliance & Operation Working Group of the Technical Committee, member of the Transfer Pricing APA Task Force and FRS Joint Working Group.
© 2013 SJ Grant Thornton. All rights reserved.
Transfer Pricing
A solid Transfer Pricing Team (cont’d)
Mohd Shamir
Associate Director
T: +603 2692 4022
E: msmr@gt.com.my
Mohd Shamir is a Associate Director in our Tax Audit and Investigation Department and is committed to deliver responsive and efficient services to all the clients.
Mohd Shamir has accumulated over 15 years of working experience in the field of taxation, in particular tax audit, Transfer Pricing (TP) audit and investigation for individual clients, SMEs
and large corporations. He is also responsible in dealing with the Government Authorities particularly the Inland Revenue Board, Malaysian Industrial Development Authority (MIDA) and
Government Ministries especially Ministry of Finance.
Mohd Shamir is currently a member of The Institute of Chartered Secretaries and Administrator (ICSA, UK) and a member of the Malaysian Institute of Chartered Secretaries and
Administrators (MAICSA). Chan Tuck Keong
Senior Manager
T: +603 2692 4022
E: tkchan@gt.com.my
Chan Tuck Keong is a Senior Manager in our Transfer Pricing Department and is committed to deliver responsive and efficient services to all the clients. He has accumulated over 9 years of
experience in taxation, involving in tax planning and restructuring exercise, consultancy jobs and international tax planning.
Chan Tuck Keong manages all aspects of Transfer Pricing assignments and specialises in the sectors of manufacturing, mining, telecommunication, oil and gas, shipping and others. He is also
involved in various Transfer Pricing projects and the settlement of Transfer Pricing audit cases with the IRB.
© 2013 SJ Grant Thornton. All rights reserved.
Transfer Pricing
Offices
Contact Us
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If you would like to find out how Grant Thornton can assist you and your business, please contact us in Malaysia or any of our regional offices near you.
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© 2013 SJ Grant Thornton. All rights reserved.
Transfer Pricing
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2013 SJ Grant Thornton
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