Lawyer specializing in tax control of transfer prices
Tax control of transfer prices
In the context of increased globalisation and the constant strengthening of tax obligations, transfer pricing has become one of the main areas of control of tax administration.
Enterprises belonging to international groups or with significant intra-group relationships are particularly exposed to complex tax controls and high financial stakes.
The use of a lawyer specialising in tax control of transfer prices is therefore a key strategic lever for securing operations, defending the interests of the company and effectively managing tax disputes.
Transfer pricing: a major tax issue
The transfer prices correspond to the financial conditions applied to transactions between related companies, namely:
- sales of goods;
- services;
- intellectual property royalties;
- intra-group financial flows.
In accordance with the principle of full competition, such transactions must be carried out under conditions comparable to those carried out between independent undertakings.
The French tax administration, in conjunction with the OECD recommendations and BEPS actions, pays particular attention to these mechanisms, which it considers as a potential vector of erosion of the taxable base.
Tax controls on transfer pricing are now:
- more frequent;
- more technical;
- longer;
- Financially more sensitive.
The Key Role of Lawyer in Tax Control of Transfer Pricing
A lawyer specializing in tax control of transfer prices intervenes at all stages of the control, with dual competence in domestic and international tax law as well as in tax litigation of cases.
Assistance in tax control
Once a tax check has been opened, the lawyer accompanies the company in:
- the analysis of the verification notice and the scope of the control;
- managing exchanges with auditors;
- preparation and communication of transfer pricing documentation;
- the response to requests for information and specific questionnaires.
Its role is to:
- anticipate friction points;
- secure fiscal positions;
- structure a coherent legal and economic argumentation.
Analysis and defence of transfer pricing policy
The specialized lawyer works closely with:
- Tax and financial directorates;
- economic councils;
- experts in comparable valuation and analysis.
It shall inter alia:
- analyse the existing transfer pricing policy;
- identify recovery risks;
- demonstrate compliance of intra-group transactions with the arm's length principle;
- contesting the recovery methods used by the tax administration.
This expertise is essential in the face of adjustments often based on questionable economic analyses or inappropriate comparables.
Management of tax adjustments and litigation
When tax control leads to a proposal for correction, the intervention of a lawyer in transfer pricing disputes becomes decisive.
Pre-litigation phase
The lawyer assists the company in:
- the drafting of comments to the proposal for rectification;
- conflicting exchanges with the administration;
- hierarchical appeals and referral to the competent committees;
- possible negotiation of penalties.
The objective is:
- obtain a total or partial abandonment of adjustments;
- or, failing this, prepare a solid case for litigation.
Business Tax Litigation
In the event of persistent disagreement, the lawyer shall represent the company before the competent courts.
It develops a contentious strategy based on:
- domestic tax law;
- international tax treaties;
- national and European case law;
- OECD guidelines.
Financial stakes are often considerable, both in terms of taxes and penalties and impact on the image of the group.
A strategic and comprehensive approach
A law firm specializing in tax control and tax litigation of cases provides a comprehensive approach to transfer pricing issues.
Beyond tax control, the lawyer also intervenes upstream to:
- secure intra-group schemes;
- assist in the establishment or review of transfer pricing documentation;
- accompanying amicable procedures and advance transfer pricing agreements (APP);
- manage double taxation issues.
This global vision transforms a tax constraint into a tool for risk management and tax governance.
Why use a lawyer specializing in tax control of transfer pricing?
Given the increasing technicality of tax controls, the intervention of a specialist lawyer offers:
- thorough control of national and international tax rules;
- a structured dialogue capacity with the tax administration;
- strict defence in litigation;
- a sustainable security of the group's practices.
In an increasingly demanding tax environment, tax control of transfer pricing is not improvising. It requires the support of an experienced professional, capable of defending the company's interests with rigour, strategy and responsiveness.
