STANDARDIZING YOUR TRANSFER PRICING WORK FLOWS

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Backgroundand introduction

TaxInterco is a web-enabled transfer pricing software solution that eases your needs in case your company or client:

Ý Has a backlog of to be prepared transfer pricing documentation; and/or

Ý Wants to streamline the information gathering process for transfer pricing documentation; and/or =

Ý Wants to immediately start creating files

TaxInterco is the latest module within TaxModel’s TaxSuite …

… and is a web enabled application fully compliant with the OECD / G20 Base Erosion and Profit Shifting (“BEPS”) requirements as described in the final report of Action 13 (Transfer Pricing Documentation and Country-by- Country Reporting). TaxInterco is fully compatible with the OECD standardized electronic platform for exchange of information, as issued by the OECD.

Below is an overview of the main features of the TaxInterco module, starting with collecting and classifying source data followed by the design phase onto the documentation part and then concluded with a financial summary.

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Data Collection, Parsing & ClassificationWith TaxInterco, you can collect any kind of data and leverage from existing information easily by its unique parsing functionality. TaxInterco’s parsing functionality can convert PDF, Word, Excel and PowerPoint documents into data that can be (re)used in any other area or purpose within the software. Our aim with TaxInterco is to have a data centric1 tool that avoids manual intervention where possible.

1Business and government organizations create large amounts of both structured and unstructured information, which needs to be processed, analyzed, and linked. The storing, managing, accessing, and processing of this vast amount of data represents a fundamental need and an immense challenge in order to satisfy needs to search, analyze, mine, and visualize this data as information. Declarative, data-centric languages are increasingly addressing these problems, because focusing on the data makes these problems much simpler to express.

Mainfeatures

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Transfer pricing policy design TaxInterco provides a section that allows multinationals or their advisors to analyze or (re)design parts or the entire transfer pricing policy starting from the highest level value chain position. This design area will include dashboard views enabling users to easily share and present data on the key highlights of the multinationals actual transfer pricing policy.

The key steps in the Design part of the TaxInterco module start with the value chain...

Mainfeatures

Value Chain

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Functionalattributions

Transactionsoutline

Mainfeatures

Functionalanalysis

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TP methodselection

Export TP policy paper

Mainfeatures

...up to the export of a TP policy paper.

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DocumentationTaxInterco will offer dashboard views enabling users to easily share and present data on the status of transfer pricing documentation for the relevant fiscal year.

Mainfeatures

TaxInterco supports the compilation, administration and monitoring of transfer pricing documentation. The structure of TaxInterco is flexible and can be adjusted to meet your needs while staying compliant with OECD / G20 Base Erosion and Profit Shifting (“BEPS”) requirements.

TaxInterco produces documentation to meet compliance and filing obligations with revenue authorities globally and can export parts or full reports at any time again and again. When using TaxInterco, you can organize a global preparation and review workflow by tax year and roll forward an entire tax year while still maintaining relevant information for prior years. Users can also work with TaxInterco as “sandbox” tool and try alternative transfer pricing scenarios. If a decision is made to change (parts of) a multinationals’ transfer pricing policy, users can decide to promote a temporary transfer pricing position to the actual transfer pricing position for the upcoming fiscal year.

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Financial AnalysisThis section in the TaxInterco module will display the PLI ratio that measures the profit achieved with regard to the transaction compared to the profit of the final set of comparable companies. TaxInterco will also offer other dashboard views enabling users to easily share and present data from the financial transfer pricing modules in multiple angles. This feature facilitates easy overviews, noticing trends and provides useful insights.

Mainfeatures

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ToolSpecifications

Source data from clients (PDF, Word, Excel, PowerPoint) requested, collected &

parsed into format for TP documentation

Transfer pricing financials uploadedthrough separate tools

(can also be used as standalone tools):

TaxCBC TaxBenchmark TaxFinance

Functional value chain, functions attribution, transactions outline, functional analysis,

TP Method Selection

Full audit trailing

Transalation & lanaguage management

Document preparation (Master File, Country Files, Divisional Files) management and compliance

Build in communication module including user rights for manual data collection

Graphical management reporting ofmultiple year data

Full user management, including administrator, preparer, reviewer & audit rights

Automated suggestion for least complexentity and TP Method

Review & Approval Workflow

Data flagging & mailing system for external data requests directly from TaxInterco

With TaxInterco we bring a tool that can manage your operational transfer pricing efforts. TaxModel’s TaxInterco helps you building and managing your transfer pricing control framework and facilitates your company or your clients with everything from training and consultation to customizing transfer pricing related reports and files.

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One of the key competitive strengths of TaxInterco is that all major transfer pricing workflow elements, i.e. data collecting, converting, classification, policy design and the documentation are combined in 1 tool. Depending on needs and budget multinationals have the flexibility to add fully compatible financial transfer pricing modules on top. These include a Country-by-Country reporting module, benchmarking module and an intercompany financing module.

Source data from clients (PDF, Word, Excel, PowerPoint)

requested, collected & parsed into format for TP

documentation

Functional value chain, functions attribution, transactions outline,

functional analysis, TP Method Selection

Document preparation (Master File, Country Files, Divisional Files)

management and compliance

Separate tools:

Ý TaxCBC Ý TaxBenchmark Ý TaxFinance

Workflowelements

Data collection, parsing & labelling

TP Policy Paper

Group transfer pricing policy

design & analysis

Documentation build &

management

Master Divisional &

Country FilesDashboards / BI

CbC, Financial benchmarks,

price checking & updating

Reports Dashboards

BI

TaxInterco Environment

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info@tax-model.com+ 31 (0)73 800 00 30

www.taxmodel.com