A robust and compliant approach to estimate the arm’s length rate of an intragroup financing instrument
TP qube has streamlined the full process to estimate the arm’s length rate of intragroup loans, allowing us to be more accurate and consistent in the estimation of the credit rating of the borrower and subsequently of the interest rate. We strive to provide these analyses faster and cheaper for our clients.
We partnered with a global leading financial information platform to provide fully independent and objective interest rate analyses.
All our analyses are performed by experienced TP staff, ensuring the final quality of the deliverables.
A four-step process
1. Data gathering (incl. phone call and information request)
2. Credit rating estimation (optional)
3. Arm’s length range computation
4. Results presentation
Get fast and accurate results, able to convince tax authorities
We follow a straightforward process allowing us and our clients to waste no time. Our analyses are tailored to the characteristics of the facility and the tested parties (industry, geography, maturity, seniority, creditworthiness, etc.), and respect guidelines and recommendations of international institutions (OECD, UN) as well as local tax authorities. We guarantee on-time delivery in pre-agreed timeframe.
Which industry and geography do you cover?
We cover all industries and the main geographies. For more details, contact us at email@example.com.
Is a credit rating analysis always needed?
Almost always. In some rare situations (such as an important implicit support of the parent), the credit rating of the group can be relied upon to derive the interest rate, and no additional work is needed.
Which parameters are taken into account in order to compute the rate?
Is the approach for cash pooling similar?
- No! Assessing the arm’s length nature of a cash pool system relies on a different approach.
- It notably focuses on the functional analysis of the head of the cash pooling. Also, in some cases, parts of the cash pooling may be requalified as long term loans.
- Please contact us at firstname.lastname@example.org for more information.
What about internal guarantees?
- Financial guarantees should, in general, also be priced. The approach shares features with the one used to estimate the appropriate interest rates.
- Please contact us at email@example.com if you need more information.
Where are the analyses performed? By whom?
Any other question?
Do not hesitate to contact us: firstname.lastname@example.org. It will be our pleasure to help you.