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Advance pricing agreements offer audit assurance
Businesses spend a significant amount of management time on transfer pricing, often engaging advisers to prepare extensive transfer pricing reviews, in an attempt to mitigate the impact of a potential transfer pricing audit. However, given the subjective nature of transfer pricing, adjustments may still be sought by tax administrations and the dispute resolution process can be gruelling. Taxand UK deconstructs international approaches to APAs and explains how the agreements can help prevent unexpected adjustments, interest or penalties in transfer pricing.