Transfer Pricing

Covington assists taxpayers on a range of transfer pricing issues across our international tax planning and tax controversy practices. Leveraging our strong relationships with transfer pricing economists and foreign law firms, including the Taxand network of global firms, we provide advice on transfer pricing aspects of business restructurings, existing trading structures, and financing transactions. We are able to help clients across industries think strategically about their transfer pricing documentation, Country-by-Country Reporting profile, and potential public disclosures, including by developing global transfer pricing audit defense plans. We also have significant experience assisting taxpayers who are under IRS and foreign tax examination and in working with the IRS’s Advance Pricing and Mutual Agreement (“APMA”) program on Advance Pricing Agreements (“APAs”) and Mutual Agreement Procedure (“MAP”) matters.

Covington lawyers author the BNA Tax Management Portfolio on Section 482 and the chapter on audits and appeals in the Cole Practical Guide to Transfer Pricing treatise.

Capabilities

• Implementing appropriate intercompany agreements and transfer pricing policies for business restructurings, trading structures, and financing transactions, including strategic consideration of global or specific-jurisdiction transfer pricing policies and related documentation
• Obtaining APAs
• Defending transfer pricing positions in IRS and foreign tax examinations
• Defending transfer pricing positions before IRS Appeals, and if necessary in litigation
• Obtaining MAP assistance under a bilateral tax treaty following transfer pricing adjustments
• Developing plans for tax-related ESG disclosures, such as in connection with public Country-by-Country Reporting