Case Study: a leading European government company achieves arm’s-length transfer pricing analysis with S&P Global Market Intelligence

A Tax Authority Leverages Transfer Pricing Analytics to Assess Intercompany Loans

Leading European Government Company, a European government tax authority, needed a better way to assess the creditworthiness of subsidiaries and affiliates so it could evaluate intercompany loans, interest rates, and guarantee fees against arm’s length market terms. It was looking for trusted financial data, comparable company analysis, and a pricing tool aligned with OECD transfer pricing guidance, and turned to S&P Global Market Intelligence for support.

S&P Global Market Intelligence provided Credit Risk Pricing on the S&P Capital IQ Pro platform, combining detailed public and private company financials, credit analytics, qualitative inputs, parental support analysis, issue ratings, and corporate bond yield curves to generate stand-alone credit scores and defensible interest rates. The result was a streamlined, transparent workflow that helped the transfer pricing team benchmark peers, assess risk more consistently, and price intercompany transactions in line with the OECD Guidelines, though the case study did not provide specific quantified savings or time reductions.