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See’s Candies Ruling Means Utah May Need Transfer Pricing Fix (CORRECTED)

Oct. 11, 2018, 7:59 PMUpdated: Oct. 12, 2018, 5:39 PM

Utah may have to pass new laws to prevent companies from artificially lowering their tax bills by the way they price transactions between entities after the state lost a major transfer pricing case in the state Supreme Court.

Transfer pricing is how a company measures the value of goods and services transferred between related parties, or its entities in different tax jurisdictions.

In light of the 5-0 ruling, the Utah Legislature may want to consider other ways states have stopped companies from distorting their taxable income through the way they report related company transactions, Helen Hecht, general counsel of the ...