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Guide · Transactions · 8 min
Intercompany services
Scope the service, benefit evidence, cost pool, allocation key, markup and Local File support.
01
Establish that a service was received
Describe the activities performed, the recipient and the expected commercial or economic benefit. Separate services from shareholder activities and duplicated activities.
02
Build the charge
- Define the provider and recipient entities.
- Identify direct and indirect costs in the pool.
- Exclude shareholder, pass-through and unrelated costs where appropriate.
- Select allocation keys that reflect expected benefit.
- Support the markup and document any simplified approach used.
03
Evidence pack
Connect the agreement, service descriptions, cost schedules, allocation calculations, invoices and benefit evidence to the documented TP position.