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Intercompany Accounting: Cleaning It Up and Keeping It Clean

Rebecca Howard | 05/01/2017

Intercompany transactions should be treated as arm’s length arrangements and routinely invoiced and settled as if the goods or services were provided by an outside 3rd party. Often, however, backlog arise – driven by changes in personnel, an unwillingness to understand process, ignoring potential impacts, cross currency alignment issues, inability to settle transactions, and process design flaws. 

With tax authorities globally now applying new pressure through increased regulation and more stringent audits impacting intercompany transactions, penalties can be steep, swift and severe.

Mastercard's Rebecca Howard has written a whitepaper specifically for SSON's members, to point a spotlight at this problem.

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