From discussions we have had with professional services firms around the world; many are cautiously optimistic about the impact of the ‘credit crunch’ on the demand for tax and transfer pricing services. Whilst the sheer number of international M&A transactions has diminished in recent months compared to 2006/07 levels, the focus of multinational businesses has turned to cost reduction measures. Tax is one of a raft of costs which companies are seeking to minimise (salaries and wages being another you might add!), and tax and transfer pricing planning in order to permanently (and legitimately) reduce the group’s tax bill is continuing to be in demand.

Tax effective supply chain planning and management involves a great deal of resource and commitment from both the advisor and the multinational undertaking such a significant restructuring programme. However, this commitment can result in substantial permanent tax, and other operational cost savings, driven through a more efficient supply chain which has been redesigned (and often redeployed) in more tax advantaged or cost efficient locations.

Given that these redesign projects can take several months or often years to fully complete and integrate into a business, professionals experienced in international transfer pricing and its connected disciplines (international tax, operational management consulting, economics, and valuation), continue to be in demand throughout the world. As transfer pricing is an internationally transportable skill in more ways than general tax or legal skills, many firms are interested in transfer pricing professionals with international experience.

However, some barriers to the ‘free trade’ of transfer pricing professionals still exist. Visa quotas in the US; native language skills in Spain, France and Germany; and at least some practical experience under your belt, mean that it is not all plain sailing. And, sure, the credit crunch has made firms rethink upcoming budgets and headcount positions but a consistent theme that we are seeing in the global market is that good transfer pricing professionals are hard to find and are in demand. So while no one is in a hurry to say that the tax and transfer pricing professions are recession proof, the future is looking a little less bleak than other sectors of the global economy. One-hundred percent bonus, anyone?