Mexico Shares Transfer Pricing Experience With Panama

On July 14 to 18, 2014, two officials of the National Revenue Authority of Panama traveled to Mexico’s Tax Administration Service to learn of the SAT’s experience in enforcing its transfer pricing regime.

The main objective of the visit was to learn how SAT monitors transfer pricing compliance, and to discuss its experiences and best practices in terms of case selection, planning, and auditing.

Among the main topics discussed were case detection; the legal framework for the transfer pricing audit process; the importance of functional analysis; and the process of evaluating comparables, including discussion on the use of public and private financial databases.