The Steering Committee of the OECD Global Forum on Transfer Pricing undertook a project on transfer pricing risk assessment in November 2011. The objective of that project was to produce a practical handbook for providing clear and detailed steps countries can take to assess the transfer pricing risk presented by an individual taxpayer’s operations.
The OECD Forum on Tax Administration published a report entitled “Dealing Effectively with the Challenges of Transfer Pricing” in January 2012, one chapter of which addresses transfer pricing risk assessment.
On 30 April 2013, a Draft Handbook on Transfer Pricing Risk Assessment was published by the OECD. The handbook, which was produced by the Steering Committee of the OECD Global Forum on Transfer Pricing, provides detailed information and practical resources that countries can follow in developing their own risk assessment approaches.
This handbook supplements useful materials which are already available with respect to transfer pricing risk assessment. The handbook is intended to be sufficiently detailed so that it can serve as a manual for both developing and developed countries to use in conducting transfer pricing risk assessments. A transfer pricing approach has already been successfully implemented in a number of countries including the US and UK and examples of the practice in these countries are included in the draft handbook.
