As many countries are now fully armed to combat corporate tax avoidance, tax authorities have started insistently claiming their ‘‘fair share’’ of tax income. They all are looking at the same profit, yet aiming to get a bigger piece, if not the whole ‘pie’. Facing this perfect tax storm, multinational enterprises should be proactive in determining how the profit is allocated.
This statement is also applicable to multinational pharmaceutical companies illustrated by recent tax cases of Eli Lilly in Brazil (Case number 16561.720001/2011-10), Pfizer in the U.S. (Pfizer Inc. v. D.C. Office of Tax and Revenue, D.C. OAH) and many other similar disputes, as well as the blocking of Pfizer and Allergan merger due to potential tax advantages.
To provide multinationals with a simple tool for high level profit allocation, TPA Global suggest a practical and quantitative approach on how to allocate the profit within a multinational enterprise. This article applies the model on the pharmaceutical industry considering industry trends and market data.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):