The use of transfer pricing software is not a recent development within the industry. Transfer pricing software packages were initially designed to automate rudimentary transfer pricing activities such as benchmarking and documentation. The software developers claimed that a revolution would happen in the market, where software would empower multinational enterprises (MNEs) to take responsibility for their own transfer pricing; and at the same time reduce costs of outsourcing to external consultants.
However, since their release over a decade ago, many of the efficiencies promised by software developers have not materialised; and the ‘revolution’ of the transfer pricing industry was not forthcoming.
It is through these observations that Transfer Pricing Associates (‘TPA’) recognised a gap between what software developers could deliver and what functionality MNEs expected the software to perform. Thus, to further analyse why corporates have shied away from this software, TPA surveyed the in-house tax professionals of twelve multinational companies during 2008 to collate information on their experiences and perceptions of transfer pricing software, as well as how in-house professionals manage transfer pricing for their organisation.
This article summarises the major findings of the survey TPA conducted.
About Transfer Pricing Associates
Transfer Pricing Associates (TPA) is the leading independent provider of global transfer pricing services and part of the TPA Global group. The TPA Global group is an independent and specialist provider of expert transfer pricing, tax valuation and customs services, headquartered in Amsterdam and with our own offices and coverage in over 25 countries around the world.
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