Why are transfer pricing tax professionals in demand and what can we expect over the next 12 months?

Pure Taxation has witnessed a significant increase in the demand for transfer pricing professionals at all levels of seniority in 2009 and into 2010. Some transfer pricing jobs were affected by the redundancies made throughout 2009, although generally TP teams remained strong and were less affected than mainstream corporate tax. Andrew Vinell, permanent transfer pricing jobs specialist further discusses the factors that have influenced such demand and what he is witnessing for this year.

Why transfer pricing jobs are in demand

There are many reasons why transfer pricing professionals have stayed in demand. In a recent Big 4 firm survey of multi-national companies, 40% of all respondents identified transfer pricing as the most important tax issue facing their group and with 78% of companies expecting a transfer pricing audit in the next two years it is no surprise that most businesses see transfer pricing tax as the number one international tax issue of interest.

Reasons for this stem from tax authorities of almost all major market economies have implemented transfer pricing tax rules, usually accompanied by documentation requirements with significant penalty provisions. Previously it was possible to focus TP compliance on the requirements of just one country, but now multinational companies must respond to an ever-changing landscape of regulations, court judgements and pronouncements in a number of countries.

This year continues to see strong demand in commerce and practice

Tax authorities in many countries are increasing the number of the dedicated transfer pricing resources and improving their specialist capabilities, along with the frequency of TP audits and the severity of penalties. This continues to lead to in-house teams needing to both increase the number of specialists in their own teams as well as rely on the services of the Big 4 and other practice firms, which has in turn led those firms to increase the numbers in their own transfer pricing tax teams.

Pure Taxation is currently working with all the Big 4 firms, as well as many of the mid-tier firms’ transfer pricing departments to help build up these teams as demand for transfer pricing jobs continues to increase. On the in-house side, many corporates are adding additional resource to their own internal TP teams and many smaller firms with no previous TP tax capability are looking to employ their first TP resource.

Should you wish to discuss specifics of your tax career, please get in contact for a confidential discussion with Andrew Vinell on +44(0)20 7429 4488 or Marisa Hari +44(0)20 7429 4421.