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TRANSFER-PRICING5 MIN READ

Answer the CbCR risk flag with facts

Respond to a country-by-country reporting risk signal with a fact-based reconciliation plan.

The draft CbCR shows Luxembourg with 31 percent of profit, two employees, limited tangible assets, and royalty income from operating markets. The master file says Luxembourg owns key IP and controls licensing strategy, but the local files have uneven evidence of decision-making and outsourced R&D oversight.

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