Transfer Pricing exists when multinational companies conduct trade with related parties cross border. As multiple jurisdictions are involved, local Tax Authorities ensure that sufficient profits are recognised, and therefore tax paid, within their country. For the companies, transfer pricing exercises are useful to help identify which of their subsidiaries or divisions are performing well or otherwise. Multinational companies can suffer from double taxation on profits earned if they do not have a proper Transfer Pricing policy in place. Transfer Pricing legislation is wide ranging and applies to the transfer of goods, services, financial transactions and intangible property. It is essential that companies are able to demonstrate to the appropriate authorities that they have imposed an arm’s length price on all cross-border activities i.e. the transfer price should be the same as if the two companies involved were indeed two independents. Many finance directors regard Transfer Pricing as the single fastest growing tax issue as the rules are complex and often without a single ‘right’ answer. The Transfer Pricing landscape over the next few years is expected to be ever changing as local Tax Authorities, tax payers, the OECD and the World Customs Organisation, continue to work together and develop the Transfer Pricing guidelines and local legislations. In Europe, the move by the EU to create freedom of establishment, movement and capital across Europe creates additional issues for companies. This is a complex area that demands knowledge of tax, commercial law, economics, accounting and business practice.

* Looking into the description; I would say yes, must be someone with Tax skill specialist; both domestic and foreign trading