Emerging Trends in Transfer Pricing

Dr Daniel N. Erasmus 27 November 2023
Emerging Tax Trends in Transfer Pricing by Prof Dr Daniel N Erasmus

Article published in SAIT, Tax Talk Magazine, Issue 103 November/ December 2023

Transfer pricing (TP) disputes have always posed challenges to multinational enterprises (MNEs) and tax authorities. The interpretation and implementation of arm’s length principles, the backbone of TP regulations, have led to an increasing number of TP disputes across the globe. This article considers emerging trends, emphasising the critical role of TP expert witnesses in any TP dispute.

The significance of TP expert witnesses in TP disputes

A central theme in any TP dispute resolution process is the selection and preparation of a TP expert witness. Such an expert is often called upon to lend their expertise during the trial; however, their participation is required very early in the TP dispute process to aid in finding workable resolutions.

Selecting the right TP expert witness

The onus of proving the arm’s length price rests with the taxpayer. It is crucial to choose an expert who possesses the requisite technical knowledge and the capability to present findings credibly in a court environment. Whereas there are many TP specialists globally, only a handful have the experience to serve as an effective expert in such a setting. A list of key considerations in selection follows. >>> Click here to download the full article >>>

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Categories: South Africa, Transfer Pricing
Dr Daniel N. Erasmus

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