Time to save budget & time in Transfer Pricing compliance

Summary

The webinar titled “Time to Save Budget & Time in Transfer Pricing Compliance” was led by Mike van Vuuren and Richard Slimmen, focusing on strategies to optimize transfer pricing (TP) management while minimizing costs. The session began with an overview of comprehensive TP packages that encompass strategy, design, monitoring, control, compliance, and controversy, revealing that all attendees felt under-resourced for complete coverage. A discussion on resources allocation highlighted that many participants rely on external advisory services due to budget constraints and are increasingly shifting towards insourcing repetitive tasks. The conversation also addressed the evolving landscape of compliance from pre- to post-BEPS, marked by growing complexity and scrutiny. Emphasizing the benefits of automation, the presenters showcased how it can enhance efficiency and cost management. The session culminated in a demonstration of a cost savings calculator, illustrating substantial potential savings from insourcing and outsourcing, and encouraged attendees to explore these tools further while inviting them to reach out for personalized advice on automation benefits.

• Poll results: Majority use advisory services for 25-75% of TP package management
• Budget constraints identified as main reason for incomplete TP package coverage
• Discussion on outsourcing, insourcing, and co-sourcing models
• Trend towards insourcing more work, especially repetitive compliance tasks

• Pre-BEPS, BEPS, and post-BEPS periods discussed
• Increasing complexity and frequency of compliance requirements
• Post-BEPS era likely to see increased scrutiny and controversy
• Potential for automation in future compliance requirements (e.g., Pillar Two)

• Tax teams often focus on costs rather than benefits of automation
• Advantages: central work environment, reduced key man dependency, improved consistency
• Automation frees up time for value-added work
• Potential for monetary savings through reduced external costs and improved efficiency

• Introduction of cost savings calculator based on three inputs
• Examples of insourcing (45% savings) and outsourcing (70% savings) variants
• Emphasis on potential for significant cost reduction, especially in outsourcing scenarios
• Encouragement to use the calculator and contact for further assistance