Transfer pricing a risk management issue for multinationals in the Middle East has been saved
Transfer pricing a risk management issue for multinationals in the Middle East
3 February, 2015 - As the Middle East region continues to develop as a key growth market for multinational businesses, it is also evolving with respect to its general tax practices, including the formation and application of transfer pricing rules and associated guidelines.
The rising volume and variety of intercompany transactions and transfer pricing regulations, accompanied by increased enforcement activities worldwide have made transfer pricing a leading risk management issue for global businesses. Transfer pricing refers to pricing arrangements in relation to all aspects of intra-group transactions occurring between related business entities. These include transfers of tangible goods, provision of services, transfers of intellectual property, issuance of loans and other financing transactions.
Against this backdrop, Deloitte Middle East has appointed an experienced professional, Adil Rao, to lead transfer pricing advisory services across the region. Adil moved to the Middle East with a base in the UAE, from Deloitte in the UK, where he spent eight years as a member of the Global Transfer Pricing team. He is a qualified Management Accountant and holds certifications in International Tax and Transfer Pricing from the Chartered Institute of Taxation UK, and has an MSc in Law and Accounting from the London School of Economics.
“It is impossible to deal with international tax matters today without considering transfer pricing – especially in light of the rate of regulatory change occurring globally. With close to fifteen years’ experience as a transfer pricing and international tax specialist, Adil is a great addition to the Middle East team to strengthen the capabilities of the firm,” explains Nauman Ahmed, partner in charge for Tax Advisory services, Deloitte Middle East.
Transfer pricing is increasingly becoming one of the most important issues in international tax and is already dominating the tax agenda for multinational businesses and tax authorities in the developed world.
“The recent Organization for Economic Cooperation and Development (OECD) initiative on base erosion and profit shifting (BEPS) has further highlighted the importance of transfer pricing, resulting in many countries now sitting up and taking notice of the need to strengthen their transfer pricing regimes”, notes Ahmed.
Commenting on his move, Adil Rao stated: “It is very exciting to be joining a growing, dynamic, and entrepreneurial team at Deloitte Middle East’s International Tax Centre of Excellence in Dubai. Their existing strength and Deloitte’s global transfer pricing network provide an excellent platform to offer a full range of high quality transfer pricing solutions to our clients across the region.”
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Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of excellence.
About Deloitte & Touche (M.E.)
Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is the first Arab professional services firm established in the Middle East region with uninterrupted presence since 1926.
Deloitte is among the region’s leading professional services firms, providing audit, tax, consulting, and financial advisory services through 26 offices in 15 countries with more than 3,000 partners, directors and staff. It is a Tier 1 Tax advisor in the GCC region since 2010 (according to the International Tax Review World Tax Rankings). It has received numerous awards in the last few years which include Best Employer in the Middle East, best consulting firm, and the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW).