Using AI Would Provide Greater Transfer Pricing Tax Transparency

Transfer pricing continues to generate friction globally. It remains vulnerable to manipulation as economies digitize and multinationals seek tax savings. In this climate, regulators are trying to stem the shift of profits from their origins into affiliated entities in low-tax locales.

The shifting tide of transfer pricing regulations and compliance is ripe for disruption. Artificial intelligence and machine learning tools have potential to satisfy demand for consistent valuation and requirements. An open-source and public-facing AI model that provides tax transparency, and a safe harbor for taxpayers who abide by its valuations, is key for compliance.

Where AI Shines

The field ...