Cross-border tax controversy

Tax controversy management comes in several forms and phases. In all areas of tax, there are actions that can help prevent controversy and minimize the risk of an audit by positioning a taxpayer’s case appropriately when an audit is imminent or in progress or when it turns into a dispute. EY takes a deliberate approach to managing tax controversy risk by:

• Providing robust support at the time an intercompany transaction is planned and put into place
• Monitoring the implementation to support compliance with the up-front plan and preparing appropriate documentation on a timely basis when events occur that result in increased risk from a controversy perspective
• Communicating regularly with corporate tax departments for timely, coordinated and consistent responses to tax authority inquiries
• Managing a taxpayer’s dealings with tax authorities in an efficient, coordinated and proactive manner, since being proactive is the best defense for businesses that seek to limit uncertainty and minimize the potential for significant controversy

EY assists clients with building controversy strategies that help satisfy a company’s objectives. Such strategies often involve robust planning up front, preventative (transfer pricing) controversy advice where needed, consideration of advance (pricing) agreements (APA), audit defense work followed by a domestic administrative appeal, review of alternative dispute resolution (ADR) opportunities (such as proactive joint audit processes), preparation and implementation of a request for competent authority assistance under the mutual agreement procedure (MAP) article in an income tax treaty, and assistance in litigation.

We have deep knowledge of policy and procedural developments in the industries and jurisdictions where our clients do business, which help us counsel them to act proactively and react accordingly.