Tech Heats Up Companies’ Transfer Pricing Transparency Risks

Tax agencies’ high-tech auditing tools are supercharging their enforcement efforts and corporate taxpayer headaches thanks to a pile-on of transfer pricing reporting requirements around the world.

The reports require extensive information about companies’ transfer pricing, or the way they price transactions among corporate units: how they calculate value, where they pay taxes, and more.

By adopting new technology, tax agencies—even those with modest staff and budgets—are able to glean more from such reports.

“Everybody’s trying to do it,” Sowmya Varadharajan, Crowe LLP principal, said. “So I think we would start seeing more of these sort of things coming up, particularly ...