On 15 April, TransFair Pricing Solutions welcomed participants for an intensive and highly interactive session on “Transfer Pricing on the Deal Side”, bringing together tax and transfer pricing professionals to discuss how transfer pricing considerations increasingly influence the structuring, execution and subsequent review of transactions.
The session was led by Vanesa Ramos Ferrín, Partner at TransFair Pricing Solutions and President of the Luxembourg Transfer Pricing Association (LTPA), who guided participants through a series of practical transaction scenarios, recurring transfer pricing challenges and recent audit trends observed in Luxembourg and in cross-border contexts.
Over the course of two intensive hours, the discussion focused particularly on transactions involving investment funds, asset management structures and financing arrangements, areas in which transfer pricing questions can become especially complex due to the interaction between legal structuring, functional substance, financing conditions, governance and the allocation of risks and returns.
Through concrete examples, participants examined how transfer pricing issues may arise at different stages of a transaction — from the initial structuring and due diligence process to post-acquisition integration, refinancing and subsequent tax audits. The session also highlighted the importance of identifying potential transfer pricing implications sufficiently early in the deal process rather than addressing them only once a transaction has already been implemented.
Particular attention was given to common areas of risk, including the appropriate remuneration of entities involved in the transaction, the pricing and documentation of intra-group financing arrangements, the allocation of functions and risks between group companies, and the growing importance of demonstrating that contractual arrangements are supported by the actual conduct and economic substance of the parties involved.
The discussion also reflected on the increasingly detailed scrutiny applied by tax authorities to complex financial and investment structures. Participants exchanged experiences regarding current audit approaches and considered how robust transfer pricing documentation, consistent governance and a clear understanding of the underlying value creation can help organisations anticipate and manage potential challenges.
A special thank you goes to Maximilian Hangler-Garulo, Tax Counsel at GSK Stockmann, who joined the session as guest speaker and shared valuable insights drawn from his experience in deal-related tax and transfer pricing matters. His contribution provided an important legal and transactional perspective and helped create a thoughtful and constructive dialogue between speakers and participants.
One of the key messages emerging from the session was clear: transfer pricing should not be treated as an isolated compliance exercise at the end of a transaction. When considered early, it can play an important role in identifying risks, supporting appropriate transaction structures and ensuring that the economic rationale, contractual arrangements and actual conduct of the parties remain aligned.
We would like to thank all participants for their active engagement, practical questions and open exchange of experiences. The quality of the discussion demonstrated the value of bringing together professionals from different areas of tax, legal and transaction advisory work to explore the challenges encountered in real-life transactions.
