THE US IRS is gearing up to crack down on companies indulging in shifting profits from country to country to lower their tax bills. The IRS has been putting in its best efforts and talent to combat tax evasion; has brought aboard specialists from Big Four audit firms KPMG and Ernst & Young LLP, as well as law firm Mayer Brown and boutique consultancy Horst Frisch. To curtail tax avoidance through transfer pricing, governments seek to limit the ability of corporations to manipulate transfer prices.The pharmaceutical and high-tech sectors can expect close scrutiny, tax professional's said. The staff changes and hiring at IRS is expected to help them tackle the issue of transfer pricing and tax evasion though the battle is difficult.
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