ANALYSIS: Transfer pricing - a game of cat and mouse

Governments are increasingly sensitive about the impact of transfer pricing. As economies dull, tax becomes a very thorny issue. CT reports on the regulatory moves to prevent tax from leaking out
ANALYSIS: Transfer pricing - a game of cat and mouse

India is not taking the issue of tax lightly. After its highly publicised battle to ennoble its tax board with powers to retroactively tax any offshore transactions, caught everyone’s attention (and certainly Vodafone’s), its international tax division is now targeting high-profile names for similar reasons. It recently requested global sports goods maker Adidas file income-tax returns in India. It suspects the parent company’s subsidiaries are generating revenue from the country but not paying its taxes there.

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