Companies grapple with transfer pricing woes as tax deadline draws near

Previous approaches fall short amid Covid-19 volatility in numbers

Multinational companies with transactions between group entities have less than three weeks to account for such dealings as accurately as possible. The pandemic is said to have caused valuation uncertainty which could open the door to potential tax disputes.

Companies are looking at various ways to make a more correct assessment including relying on information from the first three quarters of the year and making judgements based on macroeconomic data. They would be looking to wrap up the process by March 15 which is the deadline for corporate entities to pay advance taxes, according to experts.

Pricing such transfers of