On 26 October, the Louisiana Department of Revenue announced in Revenue Information Bulletin 21-029 a voluntary initiative for corporate income taxpayers to resolve intercompany transfer pricing issues through a new Louisiana Transfer Pricing Managed Audit Program beginning in November.
Benefits of the program can include waiver of penalties that otherwise would be due based on the results of the managed audit and abatement of interest during the course of the audit. The program covers the current tax period (2021 tax year for calendar-and fiscal-year filers), any open tax periods, and up to four future tax periods.
As the issues around intercompany transactions are complex, corporations need to analyze the implications of participation and the need for a review of their transactions and supporting documentation.
