The steering committee of the OECD global forum on transfer pricing has issued a consultation on a draft handbook on transfer pricing risk assessment.

The handbook is a detailed, practical resource that countries can follow in developing their own risk assessment approaches and assembles recent country procedures, methods and practices in order to provide a practical resource to tax administrations seeking to develop or improve their risk assessment procedure, methods and practices.

The draft handbook addresses the following:

• the questions that a tax administration should answer in a transfer pricing risk assessment process;
• how the tax administration can evaluate whether a taxpayer presents a material transfer pricing risk that justifies a detailed audit;
• where the tax administration can get the information necessary to identify and assess transfer pricing risk;
• how the tax administration can organise itself to carry out an effective risk assessment; and
• how the tax administration can most effectively interact with the taxpayer in assessing transfer pricing risk.

The deadline for feedback is 13 September 2013. The draft is available from OECD