RoyaltyRange will invest €1,2 million in Transfer Pricing research over the next two years
Article – June 2021 | RoyaltyRange
RoyaltyRange is pleased to announce that it will invest €1,2 million to forge ahead transfer pricing research. The research is partly financed by the European Regional Development Fund.
“Finding a practical solution for effective and fair transfer pricing is a giant problem to tackle,” says Asta Rudzikiene, US lead at RoyaltyRange. “We’re in it for the long haul and that’s why it’s important to have partners that support our mission and align with our values. It’s also very important to have a strong team, so we will continue to attract top talent who would help us secure the quality of the research process.”
The economy, which is increasingly affected by internationalization and the growing number of MNE’s is leading to growing tax challenges, such as, transfer pricing, which is causing growing concerns for tax organizations and MNE’s. Transactions between related companies in different jurisdictions generate significant amount of tax commitments that should be included in the budget of relevant jurisdictions, but face a variety of differences leading to the problem of manipulated, inappropriate, or incorrect taxation. In addition, multilateral groups, including the OECD, the European Commission and IMF are exploring different taxation models for the future, foreshadowing potential global changes that would impact MNE’s that employ intangible assets and conduct operations cross-border.
“The increased digitalization of the economy raises issues about the allocation of taxing rights among countries. Moreover, during the COVID-19 pandemic, corporate taxation spillovers have become more visible as countries are in need of revenue. So, we decided to tackle this problem and to invest in research that would give us a better understanding about the functionalities that are needed to ensure transparent and predictable taxation based on quality data.” comments Asta Rudzikiene.
The project is partly funded by the ERFD according to the measure for Research, Experimental Development and Innovation.