PJ Patel, Co-CEO, and Anthony Pumphrey, senior vice president in Valuation Research Corporation’s (VRC) Princeton office are published in Tax Executive, the professional journal of Tax Executives Institute. In the article, “Valuation Perspectives From Around the World”, Patel and Pumphrey discuss how an increased analysis within financial reporting for multinational enterprises has increased the levels of analysis required for tax reporting. The authors note that while valuation standards for tax once may have lagged behind book, greater scrutiny by tax authorities along with new global standards have now increased the requirements for data, analysis, and support. This is especially clear now that the OECD’s BEPS project is in full swing.
Pumphrey observes, “The (OECD’s) BEPS project has introduced major changes to global taxation and transfer pricing, with requirements for more detail and information-sharing around economic and legal ownership and asset characteristics. As a result, practitioners and tax authorities have posed several new questions….” He notes further that BEPS has impacted higher standards for the valuation of intangibles and other assets within transfer pricing studies and royalty assessments and provides some practical considerations along with case studies for tax professionals.
Patel also includes a summary of a survey of VRC’s global partners, Valuation Research Group; the survey outlines local tax requirements, specialist certifications for valuation professionals, general tax rules, and the valuation expertise of local tax authorities.
A copy of the article is available on the Tax Executive website.