Intercompany accounting is the management of financial transactions between legal entities that belong to the same corporate group. So, it stands to reason that misaligned processes and muddled information will wreak havoc on a multinational's tax operations and increase their tax bills.
Tax authorities scrutinize transfer pricing and extract additional indirect taxes to generate tax revenue from intercompany transactions. That's why governments globally examine intercompany accounting very carefully. This makes many multinationals worry that they cannot defend their intercompany decision-making without...
