Growth, restructuring, and new intercompany transactions can all change your transfer pricing profile. Take this quick assessment to get a clearer picture of your current transfer pricing risk in just a few minutes.
What the Transfer Pricing Risk Assessment Evaluates
The assessment looks at the areas that most often shape a company’s transfer pricing risk, including:
- Business structure: How your company is organized and whether it operates across multiple countries.
- Intercompany transactions: The type, volume, and complexity of transactions between related entities.
- Transfer pricing documentation: Whether your policies, agreements, and supporting documentation are current.
- Audit exposure: Whether your company has gone through a transfer pricing or tax audit in recent years.
- Policy review cadence: When your transfer pricing policies and documentation were last reviewed.
How It Works
The assessment takes just a few minutes to complete and is designed to give you a practical snapshot of your current transfer pricing position:
1. Tell Us About Your Business
You basically need to answer 8 questions covering your company’s operating structure, cross-border operations, intercompany transactions, documentation, and recent transfer pricing activity. Each one of the questions helps build a more complete picture of your current risk.
2. We Assess Your Transfer Pricing Risk
Your responses are evaluated against key transfer pricing risk factors. Rather than looking at a single answer, the assessment considers how different aspects of your business work together to determine your overall risk profile.
3. Receive Your Personalized Assessment
View your transfer pricing risk level, understand the factors that influenced your results, and get guidance on the next steps if your assessment identifies potential areas for review.
What Your Transfer Pricing Risk Level Means
Your assessment is designed to provide an indication of your company’s current transfer pricing risk based on the information you provide. While it isn’t a substitute for a formal transfer pricing study, it can help highlight where additional attention may be worthwhile.
Here’s what each risk level means:
- Low risk: Your responses indicate that your current approach appears to be in good shape. Continue reviewing your transfer pricing as your business grows and changes.
- Moderate risk: Your answers indicate there are parts of your transfer pricing approach that deserve a closer look. Reviewing them now can help you understand whether your current policies and documentation still reflect the way your business operates.
- High risk: This indicates that your assessment identifies significant gaps in your current transfer pricing approach. A detailed review can help identify where those gaps exist and what steps may be needed to address them.
Who This Assessment Is For
This assessment is intended for businesses looking to better understand their current transfer pricing position, including:
- Businesses expanding into new markets: As your international footprint grows, it’s important to confirm that your transfer pricing approach continues to reflect the way your business operates.
- Organizations operating across multiple legal entities: Multiple entities often mean more intercompany transactions, documentation requirements, and reporting responsibilities.
- Foreign-owned U.S. subsidiaries: Review whether your current transfer pricing approach continues to support your U.S. reporting and compliance obligations.
- Businesses undergoing significant operational changes: Mergers, restructures, acquisitions, or new intercompany arrangements are all good opportunities to reassess your transfer pricing approach.
What to Do After Receiving Your Results
Your risk level provides a clearer understanding of where your transfer pricing approach stands today. From there, you can decide how to move forward:
- Review your findings: Take note of the areas that contributed to your transfer pricing risk level and consider whether they reflect your current business operations.
- Gather supporting documentation: If your assessment highlights potential gaps, review your existing transfer pricing policies, intercompany agreements, and supporting documentation.
- Discuss your results internally: Use your assessment as a starting point for conversations between finance, tax, and leadership teams about your current transfer pricing approach.
- Seek professional guidance: If your assessment indicates moderate or high risk, work with a specialist to prioritize what should be addressed first and what can wait.
Why Work With CDH on Transfer Pricing Risk
Transfer pricing affects multiple parts of your business, from tax and financial reporting to cross-border operations. Working with the right advisor can make those decisions easier to navigate.
Here’s what sets CDH apart:
Full-Service Financial & Advisory Expertise
Transfer pricing is supported by integrated accounting, tax services, audit, advisory, and technology expertise, helping you make informed decisions with the bigger financial picture in mind.
International & Cross-Border Experience
We work with multinational organizations and foreign-owned U.S. subsidiaries, bringing experience with transfer pricing, international tax, and the operational challenges of cross-border business.
Long-Term Partnership Approach
As an independent, partner-owned firm, CDH focuses on building long-term client relationships through straightforward advice and a commitment to putting clients first.
Global Reach Through Moore Global
As an independent member of Moore Global, we provide personalized service backed by access to specialists and resources in more than 100 countries.
If your assessment identified potential transfer pricing risks, the CDH team can help you understand what your results mean and determine the right next steps for your business.
Schedule your transfer pricing consultation with us today and take the next step toward a stronger, more confident transfer pricing strategy.
Frequently Asked Questions (FAQs)
If you still have questions about the assessment or what your results mean, you’ll find answers to some of the most common ones below.
Do I Need Financial Data to Complete the Assessment?
No. The assessment doesn’t require financial statements or confidential financial information. It asks about your business structure, intercompany transactions, transfer pricing documentation, and other factors that help identify your current level of transfer pricing risk.
Does the Assessment Replace a Transfer Pricing Study?
No. The assessment provides an indication of your current transfer pricing risk, but it isn’t a substitute for a formal transfer pricing study. If your results indicate moderate or high risk, a more detailed review may be appropriate.
How Often Should a Company Review Its Transfer Pricing Risk?
Transfer pricing should be reviewed whenever your business undergoes meaningful changes, such as entering new markets, adding legal entities, changing intercompany transactions, or updating your operating model.
Even without major changes, a periodic review helps confirm that your approach still reflects how the business operates.
What Factors Increase Transfer Pricing Audit Risk?
Many of these are also among the common transfer pricing pitfalls businesses encounter, including:
- Outdated transfer pricing documentation that no longer reflects how your business operates.
- Significant cross-border transactions between related entities.
- Changes to your business structure or operations without corresponding updates to your transfer pricing policies.
- Operating in jurisdictions with greater transfer pricing scrutiny and documentation requirements.
Do Small and Mid-Sized Multinationals Face the Same Audit Risk as Large Corporations?
Yes. While larger organizations may receive more attention because of their size, tax authorities also review small and mid-sized multinational businesses. Transfer pricing requirements are based on your business activities and related-party transactions, not just your revenue.
What Should I Do If My Company Receives a High-Risk Result?
A high-risk result doesn’t automatically mean there’s a compliance issue, but it does indicate that a closer review may be worthwhile. Consider the following next steps:
- Review the responses that contributed to your assessment.
- Compare your results with your current transfer pricing policies and documentation.
- Discuss the findings with your finance, tax, and leadership teams.
- Speak with a transfer pricing specialist if you need help evaluating your current approach or determining the next steps.
Take the First Step Toward Stronger Transfer Pricing Compliance
Your assessment is the first step toward understanding your current transfer pricing position. The next step is making sure your approach continues to support your business as it grows and evolves.
If you’re ready to take a closer look, CDH can help you review your results, evaluate your current transfer pricing approach, and determine the right path forward.
Take our transfer pricing risk assessment quiz to review your current situation and discuss the right next steps for your business.
