International tax planning, CFC and transfer pricing
We structure international groups with regard to the controlled foreign companies rules, BEPS and double tax treaties, prepare controlled foreign company reporting and legalise existing structures. We prepare transfer pricing documentation, reports on controlled transactions and master files, justify prices under the arm's length principle and defend clients in transfer pricing audits.
International tax planning, controlled foreign companies
Structuring international groups with regard to the controlled foreign companies rules, BEPS and double tax treaties. Reporting on controlled foreign companies and legalisation of existing structures.
The international structuring of a business is no longer limited to the choice of a jurisdiction or the optimisation of the tax burden. The current BEPS rules, the requirements on controlled foreign companies (CFC), the automatic exchange of tax information (CRS), international standards of transparency and tighter control over beneficial owners call for a comprehensive approach to building an international business.
The PROCTOR team designs international corporate structures that meet the current requirements of tax legislation and take account of the long term business goals of the owner. We analyse the ownership structure, the movement of capital, the sources of income, double tax treaties, the controlled foreign companies rules, currency regulation and the prospects for the further development of the international group of companies.
We pay particular attention not only to the legal compliance of the structure but also to its economic substance, since it is this circumstance that is increasingly becoming the subject of audits by the tax authorities.
We build international structures capable of ensuring the stable development of a business amid constant changes in international tax regulation.
Transfer pricing
Preparation of transfer pricing documentation, of reports on controlled transactions and of master files. Justifying that prices comply with the arm's length principle and defence in transfer pricing audits.
How we build an international structure
From a description of the current group to the controlled foreign company reporting and the transfer pricing documentation filed every year.
01
Mapping the current structure
We assemble the picture of the group: ownership, beneficiaries, flows of income and services, the foreign companies already in place. We determine which of them fall under the CFC rules.
02
Risk assessment
We test the structure for economic substance, the business purpose test, the BEPS requirements and the exchange of information under CRS. We show where the tax authority will see artificiality.
03
The model of the structure
We offer options for ownership and for the movement of funds, with the tax consequences calculated for each jurisdiction and with the double tax treaties taken into account.
04
Implementation and reporting
We support the changes in the structure, the CFC notifications and annual reports, and prepare the transfer pricing documentation, the report on controlled transactions and the master file.
05
Defence during audits
We justify prices under the arm's length principle during a transfer pricing audit, prepare replies to requests and run the dispute if the authority makes an additional assessment.
Formats of international support
The format depends on the maturity of the group: one set of documentation, the annual reporting cycle, or a structure built from scratch.
Transfer pricing documentation
Preparation of the transfer pricing documentation and of the report on controlled transactions for a particular year, with the prices justified and the method of comparison chosen.
Annual reporting cycle
Notifications on controlled foreign companies, annual reports, the master file and support with requests from the tax authority through the year. The team keeps the deadlines, not the accountant.
Structuring the group
Designing or rebuilding the international structure around the goals of the owner: jurisdictions, ownership, dividend flows, legalisation of existing companies and further support.
