Overview
Law360 quoted David Fruchtman in an August 20 article titled "States' Transfer Pricing Push Raises Privacy Concerns." According to the article, there is a current trend among states seeking to expand their efforts in transfer pricing to exchange taxpayer information between governments, which is raising privacy concerns among practitioners. These tactics come from states' realization that finding the right price between related parties to avoid income shifting is a highly complex and labor-intensive process that individual states may struggle to undertake on their own.
In July, the State Intercompany Transactions Advisory Service Committee put forth an information sharing agreement allowing states that want to pursue transfer pricing to share taxpayer information, which may be confidential. Fruchtman says: "I think taxpayer advocates of all types are going to be keeping a close eye on that. They need to be sure they are not providing a forum for the improper sharing of taxpayer information."
The full article can be read at Law360.