The ITR (International Tax Review) in the text "Higher compliance costs and more disputes expected under Brazil’s TP reform" comments on the Brazil’s OECD-aligned transfer pricing (TP) system will result in higher initial compliance costs for taxpayers, tax experts said that complex benchmarking analyses and expanded TP methods add further risks of lengthy disputes.
Our associate and tax manager of Azevedo Sette’ Tax team, Hanna Lauar participates of the text: “We don’t have any regulation on the master and local file, so all of that will be new. I don’t believe companies are yet prepared. They will need to evaluate what the actual margin is. The challenge will be adjusting to the new approach, to a new system in which it is possible to have an APA with tax authorities.”
To read the full text access https://www.internationaltaxreview.com/article/b1xq066b9k9x99/higher-compliance-costs-and-more-disputes-expected-under-brazils-tp-reform or click below in "see the attached".