Related party loans in a recession
Transfer pricing refers to the prices at which related companies trade with each other across borders. The purpose of transfer pricing regulations is to ensure a fair allocation of profits across territories by requiring that related parties transact with each other on an arm’s length basis. It should therefore come as no surprise that transfer pricing has become an area of increased focus for tax authorities during the recession, write KPMG's Dan McSwiney and Michelle Louw
Dan McSwiney is a tax director and Michelle Louw is a tax manager at KPMG.