Transfer pricing and Category:Treasury operations: Difference between pages

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''Tax''. 
==Treasury operations infrastructure==


An area of taxation which examines the prices paid between related parties, usually companies.
'Treasury operations infrastructure' is a core technical competency for treasurers identified by the ACT's Competency Framework.


Transfer pricing tax rules are designed to prevent related parties from shifting taxable profits between each other in such a way as to avoid tax.
The treasury function must be set up to support the business. This includes structuring the function to reflect the needs and culture of the organisation, establishing a framework of policies and procedures which enable the treasury to be resilient to external shocks (disaster recovery) to function effectively, and build strong relationships with the business and financial institutions.


The most important transfer pricing rule is that all transactions between related parties must be at 'arm's length' prices.


==Financial products and markets==


== Example ==
'Financial products and markets' is a core technical competency for treasurers identified by the ACT's Competency Framework.


If the transfer pricing tax rules did not exist, a parent company could - for example - overcharge its overseas subsidiaries for goods or services.
A thorough understanding of the various financial markets and related instruments is core to treasury. Familiarity with the intricacies of transacting such products and the risks and benefits they offer the business, as well as the ability to explain products to non-treasury members of the organisation are key.


This would - in this example - reduce the taxable profits of the overseas subsidiaries, the tax liabilities to the overseas tax authorities, and the total tax liabilities of the group, were it not for tax transfer pricing adjustments. 


But the tax transfer pricing adjustments in the overseas tax assessments will prevent any tax avoidance in this case by adding back to overseas taxable profits the amounts of any overcharges, effectively restating the taxable profits as if arm's length prices had been charged.
==Technology==


'Technology' is a core technical competency for treasurers identified by the ACT's Competency Framework.


== See also ==
The use of technology can improve the accuracy and security of treasury transactions, and deliver solutions to manage payments infrastructures, disaster recovery and automation. The wide range of systems products available need to be thoroughly evaluated to ensure they meet the requirements of the organisation. Systems must be aligned to the treasury's delegated powers, policies, procedures and audit requirements to be effective.
* [[Arm’s length principle]]
* [[Internal trading]]
* [[Thin capitalisation]]




==Other links==
==Cash management==
[http://www.treasurers.org/transferpricing Transfer pricing and treasury operations - EACT / ACT guidance note, 2009]


[http://www.treasurers.org/node/5145 Treasury and transfer pricing, Will Spinney, ACT 2009]
'Cash management' is a core technical competency for treasurers identified by the ACT's Competency Framework.


[[Category:Taxation]]
Efficient cash management is crucial to the long term success of the organisation. This involves identification and implementation of a) cash management solutions for day to day funding of operating units (e.g. sweeps, pools, remittance factories, shared service centres, in-house banks) and b) mechanisms for remitting cash across a group (e.g. royalties, dividends, loans, intra-group trade).
 
 
==Liquidity management==
 
'Liquidity management' is a core technical competency for treasurers identified by the ACT's Competency Framework.
 
Liquidity management focuses on the organisation's short term need to meet payments as they fall due. This can be achieved through the development of accurate cash flow forecasting solutions, and the management of working capital and external sources of funds to ensure resilience.
 
 
==Trade finance==
 
'Trade finance' is a core technical competency for treasurers identified by the ACT's Competency Framework.
 
Trade finance relates to operational cash flows and specifically to supporting customer and supplier transactions. Trade finance solutions (e.g. letters of credit, bank guarantees, performance bonds, export finance) manage the risks which arise with cross border trading. It also covers supply chain finance (e.g. factoring and customer finance solutions).
 
 
==See also==
* [[ACT Competency Framework]]
* [[Cash management]]
* [[Culture]]
* [[Export finance]]
* [[Factoring]]
* [[Infrastructure]]
* [[Letter of credit]]
* [[Liquidity management]]
* [[Performance bond]]
* [[Performance guarantee]]
* [[Supply chain finance]]
* [[Technical skills]]
* [[Trade finance]]
* [[Treasury infrastructure]]
 
==...==

Revision as of 15:09, 3 October 2023

Treasury operations infrastructure

'Treasury operations infrastructure' is a core technical competency for treasurers identified by the ACT's Competency Framework.

The treasury function must be set up to support the business. This includes structuring the function to reflect the needs and culture of the organisation, establishing a framework of policies and procedures which enable the treasury to be resilient to external shocks (disaster recovery) to function effectively, and build strong relationships with the business and financial institutions.


Financial products and markets

'Financial products and markets' is a core technical competency for treasurers identified by the ACT's Competency Framework.

A thorough understanding of the various financial markets and related instruments is core to treasury. Familiarity with the intricacies of transacting such products and the risks and benefits they offer the business, as well as the ability to explain products to non-treasury members of the organisation are key.


Technology

'Technology' is a core technical competency for treasurers identified by the ACT's Competency Framework.

The use of technology can improve the accuracy and security of treasury transactions, and deliver solutions to manage payments infrastructures, disaster recovery and automation. The wide range of systems products available need to be thoroughly evaluated to ensure they meet the requirements of the organisation. Systems must be aligned to the treasury's delegated powers, policies, procedures and audit requirements to be effective.


Cash management

'Cash management' is a core technical competency for treasurers identified by the ACT's Competency Framework.

Efficient cash management is crucial to the long term success of the organisation. This involves identification and implementation of a) cash management solutions for day to day funding of operating units (e.g. sweeps, pools, remittance factories, shared service centres, in-house banks) and b) mechanisms for remitting cash across a group (e.g. royalties, dividends, loans, intra-group trade).


Liquidity management

'Liquidity management' is a core technical competency for treasurers identified by the ACT's Competency Framework.

Liquidity management focuses on the organisation's short term need to meet payments as they fall due. This can be achieved through the development of accurate cash flow forecasting solutions, and the management of working capital and external sources of funds to ensure resilience.


Trade finance

'Trade finance' is a core technical competency for treasurers identified by the ACT's Competency Framework.

Trade finance relates to operational cash flows and specifically to supporting customer and supplier transactions. Trade finance solutions (e.g. letters of credit, bank guarantees, performance bonds, export finance) manage the risks which arise with cross border trading. It also covers supply chain finance (e.g. factoring and customer finance solutions).


See also

...

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