Tax authorities globally focus intensely on pricing between related parties. If you're supplying goods or services to related entities overseas, New Zealand's Inland Revenue Department scrutinises how you price those transactions. The same scrutiny applies when overseas related entities supply to your New Zealand operations.
Think you're under the radar? Think again. Documentation is vital to support your position, and inadequate transfer pricing compliance can trigger severe penalties and extensive audits that cost far more than proper planning.
The professional navigation imperative
Transfer pricing represents one of the most complex areas of international tax law, requiring professional expertise to navigate safely. Tax authorities have defined processes, and ignoring them creates significant risks for your business and personal financial security.
Operating with related entities across borders without proper transfer pricing documentation? Contact UHY Haines Norton today to discuss how professional transfer pricing compliance protects your business whilst optimising international tax outcomes.
Our experienced tax team works with your finance team and overseas entities to ensure that the New Zealand local evidence file meets the Inland Revenue requirements under the Tax Simplification measures set by Inland Revenue for Transfer Pricing. However, where those simplification measures are not able to be utilised due to the type of transaction or transaction size then we will refer clients to a local Transfer Pricing specialist to obtain assistance in preparing appropriate Transfer Pricing documentation.
Our transfer pricing support
Requirements Overview and Team Direction
We provide Transfer Pricing Risk Reviews to determine whether sufficient TP documentation exists to comply with Inland Revenue’s Tax Simplification measures where certain transactions and balances are below preset limits prescribed by Inland Revenue that signify that Inland Revenue considers there to be a low risk of non-compliance provided the prescribed minimum documentation is maintained. Where there are deficiencies, we then provide a report setting out what procedures and documentation are required in order to be compliant with these minimum requirements.
Income Tax Return Disclosure Management
International dealings require separate disclosure in New Zealand income tax returns. We provide instructions enabling your team to collate necessary information throughout the year, then ensure proper disclosure when preparing returns.
Strategic transfer pricing benefits
Comprehensive Multi-Jurisdictional Compliance
Professional transfer pricing ensures full compliance with requirements from both New Zealand and overseas tax authorities, eliminating the risk of penalties and disputes across multiple jurisdictions.
Confident Decision-Making Parameters
A clear understanding of applicable parameters enables confident pricing decisions for goods and services supplied to related parties, reducing uncertainty and enabling strategic international operations.
Predictable Tax Return Outcomes
Proper transfer pricing preparation eliminates surprises during income tax return lodgement, ensuring smooth compliance processes and predictable tax obligations.
Audit-Ready Documentation
In the event of Inland Revenue audits or reviews, transfer pricing issues will be properly documented and defensible, reducing audit risk and potential penalties whilst demonstrating professional compliance standards.
The cost of transfer pricing neglect
Transfer pricing failures can result in double taxation, substantial penalties, lengthy audits, and damaged relationships with tax authorities that affect all aspects of your international business operations.
Professional transfer pricing compliance protects against these risks whilst enabling international business structures that support rather than complicate your growth objectives across multiple jurisdictions.
Contact UHY Haines Norton to arrange a discussion about how professional transfer pricing services can ensure your international related party transactions comply with all relevant tax authority requirements.
