Transfer Pricing

The Challenge of Transfer Pricing

Transfer pricing presents some of the most challenging and resource-intensive tax and compliance issues facing multinational companies today. Among them is the need to coordinate transfer pricing policies across the company, achieve consistency in documenting transfer prices, minimize exposure to potentially enormous tax deficiencies and penalties, ensure adequate financial controls and reporting, manage the risk of economic double-taxation, and exploit legitimate opportunities for global tax minimization. Managing these issues makes multiple demands on a company's internal tax professionals -- demands that require preparation, creativity, and a proactive strategy. With the increasing globalization of commerce, and with the Internal Revenue Service (IRS) and other jurisdictions stepping up enforcement, these demands will only increase.

Miller & Chevalier's Transfer Pricing practice brings deep experience and a multidisciplinary approach to helping large multinationals deal successfully with both opportunities and challenges. Our clients are sophisticated and discerning companies who recognize the value of working with counsel with proven experience in the full range of transfer pricing issues. We have assisted them in planning and controversy matters covering products, technology, services, and financings across a wide spectrum of industries, including pharmaceutical, electronics and high tech, oil and gas, natural resources, telecommunications, business services, automotive, retail, and manufacturing.

Our transfer pricing team includes a former U.S. Department of the Treasury official who was instrumental in developing important transfer pricing guidance. Our reputation for integrity and professionalism, and our relationships within the agencies, enable us to represent our clients effectively and efficiently. Our mix of transfer pricing, tax, and international capabilities; rich government experience; and skill in resolving tough issues is a powerful combination that distinguishes our practice and offers a distinct advantage to our clients.

Making the Most of Opportunities

Sound planning in the transfer pricing arena requires more than proficiency in transfer pricing law -- in the planning context, our clients benefit from our broad knowledge and experience working with the U.S. tax treaty network, anti-deferral regimes such as Subpart F, source of income and foreign tax credit rules, and repatriation. We ensure that a company's transfer pricing policies fit within its overall tax picture and further its business objectives. Our lawyers have been working with the Advance Pricing Agreement (APA) program almost since its inception and have used that program in numerous cases to provide certainty and predictability to clients. We benefit from a tried and tested network of tax advisors that give us coverage and support in most of the major developed countries.

Leaders in Defense and Resolution of Transfer Pricing Disputes

Miller & Chevalier's Tax Controversy practice is among the largest and most successful in the country, and our knowledge and experience in the defense and resolution of transfer pricing controversies is recognized by both U.S. and foreign-based multinational companies. Many of the cases we have handled involved potential deficiencies in the hundreds of millions, and sometimes billions, of dollars. Indeed, our experience includes the single largest transfer pricing case ever litigated to decision in a U.S. court. We have a track record of success -- our clients have never sustained a penalty in any transfer pricing matter we have handled.

Whether at the audit stage, or in administrative appeals, fast-track mediation, competent authority, APA, or litigation, we integrate seamlessly with the internal client team and other experts in developing creative and persuasive responses to what are often novel and difficult issues. We have worked side by side with most of the major economic consulting firms that work in the transfer pricing area, and we are well positioned to recommend the best economist for a given situation.

Keeping Clients Informed

Our Transfer Pricing practice is never static. We monitor developments and trends closely and brief our clients as they occur. Our lawyers are recognized as thought-leaders in transfer pricing issues. Firm lawyers authored the Transfer Pricing Answer Book 2012, published by the Practising Law Institute (PLI), and co-authored the BNA Tax Management Portfolio No. 891-2nd, "Transfer Pricing: Audits, Appeals, and Penalties." Miller & Chevalier's Transfer Pricing lawyers write and speak regularly on a variety of transfer pricing issues, including areas of current controversy such as the IRS treatment of cost sharing arrangements, and we share this timely information with our clients.

Government Experience
  • Associate International Tax Counsel, U.S. Department of the Treasury
  • Advisor to the Assistant Secretary of Tax Policy, U.S. Department of the Treasury
  • Attorney Advisor, Office of Tax Legislative Counsel, U.S. Department of the Treasury
  • Special Assistant to the Assistant Secretary of Tax Policy, U.S. Department of the Treasury
Corporate Experience
Rankings and Recognition
  • Chambers USA: Tax Team of the Year, 2016
  • Chambers USA: Tax: Controversy (National), 2007 - 2016
  • Chambers USA: Tax (District of Columbia), 2003 - 2016
  • Legal 500: Tax: Non-Contentious (US), 2013 - 2016
  • Legal 500: Tax: International Tax (US), 2013 - 2016
  • Legal 500: Tax: Contentious (US), 2007 - 2016
  • U.S. News -- Best Lawyers® "Best Law Firms": Tax Law (National), 2010 - 2016
  • U.S. News -- Best Lawyers® "Best Law Firms": Tax Law (District of Columbia), 2010 - 2016
  • International Tax Review "Americas Tax Awards": Americas Tax Policy Firm of the Year, 2012 - 2013, 2015 - 2016
  • International Tax Review "Americas Tax Awards": Washington, DC Tax Firm of the Year, 2013
  • International Tax Review "Americas Tax Awards": Washington, DC Transfer Pricing Firm of the Year, 2012
  • International Tax Review: World Tax (Washington, DC), 2012, 2014 - 2017
  • International Tax Review: World Transfer Pricing (National), 2014 - 2017