Czech Republic > Publications > Archive 2014 > 19.12.2014 Christmas Card & Focus on Transfer Prices
19.12.2014 Christmas Card & Focus on Transfer Prices
19 December 2014
AUDITOR Newsletter
Tax authorities have begun to focus more extensively on examination of prices set in transactions between related entities, i.e. transfer prices. This trend follows on from the global concern of national states to combat tax base erosion and profit/shifting to more favourable tax destinations.
Considering the growing volume of cross-border transactions, the Czech tax authorities are aware of the potential to increase tax revenue by adjusting inappropriate transfer prices. Consequently, the examinations will not deal solely with targeted tax optimisation but also omitted intra-group financial settlement, failure to adjust prices to the market situation, etc.
