| Objectives | Review and adjust the transfer pricing policy to re-focus the group on profits and to mitigate tax exposure |
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| Function | Project manager directly reporting to the CFO / the management board |
| Countries | Germany, The Netherlands, France, Spain, Czech Republic, Romania, Russia, China, Mexico |
| Industry | Automotive |
| Profile | The group develops, manufactures and sells automotive components as 1. or 2. tier supplier. It operates 13 entities with about 2.500 employees and generates annual revenues of € 300 Mio. |
| Fokus | - Analysis of transactions, functions performed and risk assumed by entity (10 plants, 2 service companies) |
| - Develop, assess and implement a revised transfer pricing approach for tangible property, contract R&D and contract services including management presentations and discussions. |
| - Support various transfer pricing related tax audits and post merger integration activities |
| - Create a transfer pricing policy documentation (past) |
| Results | The project identified improvement potential with respect to project management, cost accounting and product costing. A variable contribution margin approach replaced the total cost approach and improved make or buy decisions (objective: increase utilization of manufacturing capacity available. A standardized cost plus pricing for general services was implemented (Infor PM10 reporting system) to facilitate both, cost plus pricing as well as the two-sided benefit test. The tax exposure was reduced; management was re-focused on profits. |
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