Does the UN’s Subcommittee on Transfer Pricing Mean More Scrutiny in Developing Countries?17th May 2022
Think tax authorities in developing nations won’t get around to transfer pricing audits because they don’t have the resources to comb through documentation and uncover high-risk taxpayers? Wrong. Recently, the United Nations created a subcommittee on transfer pricing to help developing countries conduct transfer pricing risk assessments and audits, so you can expect just as much scrutiny in developing nations as you would any place else.
Organized under the UN Committee of Experts on International Cooperation in Tax Matters, the transfer pricing subcommittee will focus on intercompany transactions in the highly scrutinized pharmaceutical industry as well as arrangements between entities in agricultural groups. They’ll also help developing countries navigate tax dispute resolution and economic blows due to the Covid-19 pandemic. Granted, streamlining transfer pricing compliance in developing nations is a tall order. So, how will the transfer pricing subcommittee address these issues? Good question—and until June 15, the UN is taking comments to figure it all out.