Innovation In Compliance With Tom Fox

Tom Fox and Tracy Howell continue their exploration of the intersection between compliance and tax in episode 2, where they touch on the practice of transfer pricing.  The Concept of Transfer Pricing Transfer pricing encompasses the methodologies required by tax code to price transactions between affiliated companies. Devising an arm's length rate for comparable transactions between comparable entities is more art than science. As far as compliance is involved, Tracy believes that, “If you’re a compliance officer that can say anything more than just the words, ‘transfer pricing,’ then you are, indeed, an FOT (friend of tax).”  Parties Involved in Transfer Pricing Governments (taxing jurisdictions) tend to be involved with different regimes for selling and buying. Third party organizations that are involved currently only consist of the OECD (Organization for Economic Cooperation and Development), who push standard transfer pricing laws and regulations throughout the world.   The objective of the governments