North Carolina Looks to Settle Intercompany Pricing Disputes

Multistate corporations with unpaid income tax obligations linked to intercompany pricing problems in North Carolina will have a chance to come in from the cold under a four-month voluntary compliance program.

The state’s Department of Revenue has launched a Voluntary Corporate Transfer Pricing Resolution Initiative running Aug. 1 to Dec. 1. Large multistate companies that are able to resolve their disputes with North Carolina during the amnesty period will be granted penalty waivers for all open tax periods.

• The department said the program would focus on transactions lacking “economic substance” or conflicting with the state’s fair market value ...