Transfer Pricing Risk Management

2011 ◽  
pp. 35-38
Author(s):  
Chris Devonshire-Ellis ◽  
Andy Scott ◽  
Sam Woollard
Keyword(s):  
Risk Management ◽  
Transfer Pricing ◽  
Pricing Risk

INTERNATIONAL EXPERIENCE IN PROCESSING AND ASSESSMENT BY REGULATORY AUTHORITIES OF TRANSFER PRICING RISKS

2021 ◽  
Vol 296 (4) ◽  
pp. 156-162
Author(s):  
YEVHEN KURILOV ◽  
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Transfer Pricing ◽  
Developed Countries ◽  
International Experience ◽  
Enterprise Group ◽  
Risk Indicators ◽  
Regulatory Authorities ◽  
Pricing Rules ◽  
Pricing Risk

The article analyzes and summarizes the international experience of regulatory authorities in dealing with transfer pricing risks as one of the basic elements of tax control over taxpayers’ compliance with transfer pricing rules. An efficient process for processing and assessing transfer pricing risks helps to ensure quality selection and increase the effectiveness of audits of controlled transactions, increase the efficiency of the use of limited resources, as well as greater tax certainty and reduce the number of unreasonable audits. As a result of the study: international experience was summarized and an indicative process of processing and assessing transfer pricing risks was determined; the main points of the general approach to the issue of transfer pricing risks, which are currently used in practice by the regulatory authorities of economically developed countries, have been identified; the principles of transfer pricing risk management were determined and the importance of carrying out transfer pricing risk assessment processes on an ongoing and systematic basis was indicated; the approaches to organizing the processing and risk assessment of transfer pricing proposed by the specialists of the OECD, JTPF and the UN are considered. Also, the author of the article proposed to supplement this process with a fifth post-assessment stage, which should include the following three steps (13-15): internal inspection and quality control of risk assessment processes based on the results of transfer pricing audits; improving the list of transfer pricing risk indicators and descriptions of their features and identification methods; training and professional development of specialists in the assessment of transfer pricing risks. In addition, attention was drawn to the need for proper documentation of the processing and risk assessment of transfer pricing. The article also concludes that the processes of processing and assessing transfer pricing risks should be integrated into the processes that are carried out within the framework of the functioning of the general risk management system of both the tax authority and any modern large enterprise (group of enterprises).

RISK INDICATORS OF TRANSFER PRICING ACCORDING TO THE DOCUMENTS OF INTERNATIONAL ORGANIZATIONS AND WAYS OF THEIR FURTHER USE

2021 ◽  
Vol 296 (4) ◽  
pp. 59-65
Author(s):  
VIACHESLAV KRUGLIAK ◽  
Keyword(s):  
International Organizations ◽  
Transfer Pricing ◽  
General System ◽  
International Taxation ◽  
Risk Indicators ◽  
General Terms ◽  
Separate Category ◽  
Pricing Rules ◽  
Processing Information ◽  
Pricing Risk

The article discusses the issue of establishing a list of transfer pricing risk indicators and determining further ways to use them. The problem of defining and using indicators of transfer pricing risks is relevant and has only recently begun to be discussed by experts in the field of international taxation and in academia. In fact, this category was not study as a separate category of indicators of tax risks, but was only considered in general terms as one of the types of tax risks. The study identified documents from international organizations that consider transfer pricing risks as a separate category of tax risks, as well as an element of tax control over taxpayers’ compliance with transfer pricing rules. On the basis of these documents, which summarize the international practice of transfer pricing, an indicative list of transfer pricing risk indicators has been studied and formed and recommendations have been developed on how to further use it by the tax authorities of Ukraine. The definition in this article of an indicative list of transfer pricing risk indicators in accordance with the documents of international organizations is an important prerequisite for understanding further steps to improve the domestic transfer pricing tax control system as a risk-oriented system. The author to suggested to using this list in the future for development and / or creation: a national indicative list of transfer pricing risks indicators and a domestic system for classifying and assessing such risks; standardized processes for identifying and processing information about potential transfer pricing risks and their integration into standardized processes of the general system for processing tax risks in the State Tax Service of Ukraine; determination methods (guidelines) and training materials on this issue; processes for selecting taxpayers for audits and evaluating the results of transfer pricing audits, and the like.

scholarly journals Modeling and Pricing of Energy Derivative Market

2018 ◽  
Vol 7 (4.10) ◽  
pp. 148
Author(s):  
Dr. Sellamuthu Prabakaran ◽  
. .
Keyword(s):  
Risk Management ◽  
Business Strategies ◽  
Pricing Model ◽  
Energy Derivatives ◽  
Option Pricing Model ◽  
Energy Products ◽  
Derivative Markets ◽  
Derivative Market ◽  
Selling Decisions ◽  
Pricing Risk

Energy derivatives are an energy instrument whose value be determined by on or derived from the values, more basic, a fundamental energy asset, such as crude oil, electricity, or natural gas. Energy derivatives are nonstandard products that have been generated by financial engineers (I. e exotic derivatives) and include exchange-traded contracts such as options and futures. In energy industries, the risk management and pricing model are important because the volatility of pricing in energy products. The price of the volatility can decrease the income of business strategies and its affects the consumer´s buying and selling decisions. For this reason, we have to manage the pricing risk and it became a pressure in the energy industries to continue the profitability and to avoid competitive disadvantages. The main goal of this study is to construct the option-pricing model for energy derivative markets. 

ONE- AND MULTI-FACTOR VALUATION OF MORTGAGES: COMPUTATIONAL PROBLEMS AND SHORTCUTS

1999 ◽  
Vol 02 (04) ◽  
pp. 441-469 ◽  
Author(s):  
ALEXANDER LEVIN
Keyword(s):  
Differential Equation ◽  
Partial Differential Equation ◽  
Risk Management ◽  
Factor Analysis ◽  
Numerical Procedure ◽  
Time Behavior ◽  
Valuation Method ◽  
Systematic Methodology ◽  
The Impact ◽  
Pricing Risk

A new valuation method is proposed that can be mathematically viewed as a numerical shortcut to approximately solve the partial differential equation written for Expected Instantaneous Return. The method derives OAS as "static spread plus cost of convexity" and is based on some simplified parametric assumption about the static spread's time behavior. The modeling and numerical procedure details are disclaimed with proven accuracy and time efficiency in option-adjusted valuation. The method is especially effective for multi-scenario pricing, portfolio pricing, risk management and reporting, and for quantifying the impact of "non-traded" factors on reward and risk of holding mortgages. A systematic methodology for comprehensive multi-factor analysis is covered.

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