The Mulitstate Tax Commission will assess whether its Arm’s-Length Adjustment Service (ALAS), a group that seeks to streamline states’ ability to effectively evaluate transfer pricing issues, will be able to proceed with the project.
“Is the program something that is necessary?” asked Matt Hedstrom of Alston & Bird’s State & Local Tax Group. “Is it desirable? Is it a zero-sum game for the states where they will just shift money around?”
The design plan for the ALAS program calls for a staff senior economist to conduct transfer pricing studies, an internal auditor to conduct studies that do not require an economist and the hiring of an additional economist after the program starts.
Hedstrom said he wasn’t sure that would work in a multistate environment.
“Is the program something that is necessary?” asked Matt Hedstrom of Alston & Bird’s State & Local Tax Group. “Is it desirable? Is it a zero-sum game for the states where they will just shift money around?”
The design plan for the ALAS program calls for a staff senior economist to conduct transfer pricing studies, an internal auditor to conduct studies that do not require an economist and the hiring of an additional economist after the program starts.
Hedstrom said he wasn’t sure that would work in a multistate environment.