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As Pandemic Continues, Companies Search for Year-End Tax Help

Nov. 18, 2020, 9:45 AM

Companies are facing a problem as they prepare to close their books at year-end: Either guess correctly how tax authorities will handle disruptions caused by Covid-19 or risk audits.

The pandemic has upended everything from supply chains to where profits and losses are made, forcing companies—particularly those industries hit hard by global shutdowns—to adjust their 2020 transfer pricing, or how they value cross-border intercompany transactions.

Companies are grappling with a host of questions, including how they should treat government subsidies for transfer pricing purposes, and adjust returns made to low-risk distributors in the case of losses. If tax authorities don’t ...