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| Colin Garwood, a speaker at the marcus evans European Tax Summit 2012, on planning ahead in order to circumvent transfer pricing disputes. |
London, Mar 9, 2012 - (ACN Newswire) - The immense pressure to collect taxes has placed a strong focus on transfer pricing and how international regimes allocate profits, says Colin Garwood, Head of Group Tax, Intercontinental Hotels. Those who have consistent transfer pricing policies that reflect the fundamental evaluation of their business, will thrive.
A speaker at the marcus evans European Tax Summit 2012, taking place in Dublin, Ireland, 26 - 27 March, Garwood shares his views on the need for transparency when dealing with tax issues.
- What best practices in avoiding transfer pricing disputes would you recommend?
It is essential for transfer pricing policies to be applied consistently and reasonably, rather than tailored and applied inconsistently, according to the particular jurisdiction or problem that counsel may be facing.
Transfer pricing policies must have a significant element of science and comparability. The more you tie them into the evaluation process which businesses use for decision-making or management processes, the better.
- Why is transparency a must in today's volatile environment?
The key to succeeding is being transparent and having good relationships with tax authorities. This will allow for sensible discussions to convey that you are not trying to get an unreasonable advantage, just applying consistent principles. Problems will arise when your regimes or administration processes do not allow you to convey your points.
- Are there pressures to collect taxes?
Yes, there are pressures to collect taxes, and issues arise from that both with tax authorities and with public perception. All jurisdictions are seeking to raise as much revenue as possible from businesses, and are under pressure to crack down on perceived avoidance. Tax authorities are competing to tax multinationals, while also having to demonstrate that they are not soft on avoidance. This combination poses particular challenges for multinationals and for their relationships with tax authorities.
- What are some trends in the UK that tax directors should look into?
Recent years have seen very constructive developments of the UK tax authority taking a risk-based approach which considers the profile, attitude and risk associated with a business. As the approach is tailored, it is not automatically confrontational. With a reasonable tax payer who is paying a sensible and appropriate level of tax due, there is a consensual approach that is both constructive and efficient when raising taxes.
There is an increasing need to communicate what our role is and where the boundaries lie, in order to defend both that role and constructive relationships with tax authorities. This may perhaps link with the UK's consideration of a general anti-abuse rule or one which contains a defence of reasonable tax planning.
- What advice would you give to your peers in Europe?
Tax counsel must be comfortable their arguments are reasonable as more than just a matter of formal legal interpretation of law, and content to provide broader justifications.
About the European Tax Summit 2012
This unique forum will take place at The Four Seasons, Dublin, Ireland, 26 - 27 March 2012. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes visionary presentations and interactive forums on substantial fiscal deficits, minimising tax gaps and developing transfer pricing strategies.
For more information please send an email to info@marcusevanscy.com or visit the event website at www.taxsummit.com/ColinGarwoodInterview
The Finance Network - marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.
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Please note that the Summit is a closed business event and the number of participants strictly limited.
Contact:
Sarin Kouyoumdjian-Gurunlian
Press Manager,
marcus evans Summits
Tel: +357-22-849313
Email: press@marcusevanscy.com
Topic: Press release summary
Source: marcus evans Summits
Sectors: Trade Shows, Daily Finance
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