Spotlight on Momentive Performance Materials
It’s great to hear first-hand accounts of how other companies are handling their global transfer pricing process. In this video, John Palladino, International Tax Director at Momentive Performance Materials shares some transfer pricing best practices. Hear this inspiring story of how by taking their transfer pricing process in-house, the company has benefited from cost savings, more internal control and better reports.
“We felt that if we could build that knowledge base within the company that not only for the documentation process but later on in the audit process we would be better informed and able to better defend the positions taken. Based upon this we chose to take the process in house.”
John shares how when deciding to bring its transfer pricing documentation in-house, his company proactively worked with its auditing firm to ensure the comparable companies used to benchmark their intercompany transactions wouldn’t raise issues during their year-end audit. The result? Approval from their auditors after using the Documenter version of ONESOURCE Transfer Pricing for their comparable study. However, John attributes the biggest benefit of leveraging software to automate their process to saving approximately $1 million dollars biennially.
Spotlight on Momentive Performance Materials’ Transfer Pricing Situation
- Momentive Performance Materials has tangible, intangible, and service transactions in 32 countries.
- The team manages over 50 transfer pricing documentation reports are created with the software annually
- Six individuals are in the U.S. tax department with 2 individuals in the U.S. tax department responsible for transfer pricing globally
- The team manages transfer pricing planning and documentation, including policy creation and controversy management for all 32 countries
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