Transfer Pricing Policy review for a multinational automotive supplier

Item	Description
Function	Project manager directly reporting to the CFO / the management board
Countries	Germany, The Netherlands, France, Spain, Czech Republic, Romania, Russia, China, Mexico
Industry	Automotive Industry
Client profile	The group develops, manufactures and sells automotive components as 1. or 2. tier supplier. It operates 13 entities with about 2.500 employees and generates annual revenues of € 300 Mio.
Scope	Analysis of transactions, functions performed and risk assumed by entity (10 plants and two service companies) Develop, assess and implement together with the tax advisers a revised transfer pricing policy for tangible property, contract R&D, and contract services. Facilitate the necessary management discussions and decisions. Support various transfer pricing related tax audits and post merger integration activities. Create the required transfer pricing documentation
Results	The project identified improvement potential with respect to project management, cost accounting and product costing. A variable contribution margin approach replaced the total cost approach and improved make or buy decisions (objective: increase utilization of manufacturing capacity available. A standardized cost plus pricing for general services was implemented (Infor PM10 reporting system) to facilitate both, cost plus pricing as well as the two-sided benefit test. The tax exposure was reduced; management was re-focused on profits.