A practical transfer pricing approach for treasury professionals: how to price pooled transactions?
Finally….the final transfer pricing guidance
March 31, 2020
A practical transfer pricing approach for treasury professionals: how to price stand-alone transactions?
June 24, 2020
Webinar – September 3, 11am
The recent OECD transfer pricing guidance for financial transactions provides more clarity on compliance requirements but entails implementation challenges for corporates. Therefore, Zanders will present a practical framework to price all types of intercompany financial transactions. This webinar is the second of a series of two webinars. The first webinar focused on the pricing of stand-alone financial transactions such as intercompany loans and financial guarantees. This second webinar aims to provide more details on the pricing of pooled transactions, i.e. cash pool and in-house bank interest rates.
The pricing of pooled facilities, i.e. cash pool and in-house bank interest rates, has been addressed in the recent OECD guidelines. Compliance requires multinationals to calculate the pooling synergy as the benefit from offsetting debit and credit balances as well as benefits arising from more favourable interest rates. Subsequently, this pooling synergy should be allocated between the leader and participants. Zanders will present a practical and consistent framework which can be leveraged as a compliance tool for different cash management set-ups.
Additionally, other compliance area’s will be discussed as well. Structural balances in the pool, for example, pose a tax risk for multinationals as they might be reclassified as intercompany loans. Zanders will illustrate how operational cash management processes can be used to limit tax risk.
Pieter Sermeus
Senior Manager, Zanders
Professional Background
Pieter Sermeus joined Zanders in 2013 as part of the Belgian corporate team
He holds a Master of Science in Applied Economic Sciences – Business Administration with specialization in Finance from University of Antwerp, as well as a Master of Finance from Antwerp Management School.
Pieter successfully completed CFA level I in 2014 and FRM in 2016.
Key Areas of Expertise
Treasury Strategy & Organization
Cash Management
Risk Management
Selected Project Experience
Solution design and implementation of S/4 HANA 1809 for both standard SAP functionality as well as bespoke developments at Japanese technology company.
Interim Cash Manager at an industrial conglomerate, coordinating daily and monthly cash management activities optimizing group liquidity. Design and implementation of new global liquidity structure during spin-off and merger transactions.
Roll out of the global payment factory to North America using SAP IHC at French pharmaceutical company, including payment on behalf of process, DMEE configuration and design of new functions.
Roll out of the core Treasury functionality (TRM) for the EMEA region at a British tobacco company.
Melanie Beirens
Senior Consultant, Zanders
Professional Background
Melanie Beirens joined Zanders in 2019 as part of the Belgian corporate team
Before joining Zanders, Melanie worked in the Transfer Pricing department of a Big 4 consultancy where she focused on Financial Transactions
She holds a Master of Science in Applied Economic Sciences – Business Engineering with specialization in Finance from KU Leuven, as well as a postgraduate in Tax Law from Fiscale Hogeschool Brussel
Key Areas of Expertise
Intercompany financial transactions
Transfer Pricing
Selected Project Experience
Transfer Pricing policy design for multiple large multinational corporates, both for short-term and long-term financing.
The Zanders Inside platform currently supports 30+ multinationals. The transfer pricing solutions offered on the platform are designed as self-service tools for treasury professionals to price their intercompany financial transactions in line with the latest regulatory requirements. The team is responsible to create a secure and compliant end-to-end solution overseeing product development, IT security, business development, etc.
