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Treasury & Taxation

Transfer Pricing as a Treasury Responsibility

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August 20, 2008

By Joseph Neu

An article in the spring 2008 edition of the Journal of Applied Corporate Finance by Stephen Curtis, a transfer pricing economist with Ernst & Young, made the case that treasury, and not the tax department, should be in charge of setting transfer pricing and related policy for intercompany financial transactions at multinationals. With many treasurers of US MNCs advocating the same as they struggle to utilize off-shore liquidity without taking a tax hit, the article and its argument are timely.

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