Liberal Arts Career Services
Liberal Arts Career Services


Summer 2017

Position: Transfer Pricing Intern
Student: Economics and Finance Senior

The Transfer Pricing group is part of the tax services that Deloitte offers. Transfer Pricing is about pricing the transactions and services a company sells to a related party. When a company sells its goods, services or agreements to a related party or subsidiary in the same company, it often has the freedom to decide on the price it wants. However, this gives some companies the freedom to move its revenue to countries or regions with less taxes. In that case, the U.S. government for example incurs a lost revenue from the taxes that it could have possibly made from the migrated revenue. My team is responsible for ensuring that the transactions are priced at an arm length, meaning that it is equivalent to the price of the transaction if it was sold to unrelated third party.

As a transfer pricing intern, I work with Ph.D. economists to analyze and resolve international transfer pricing issues faced by multinational enterprises. I assisted the consultants in performing detailed economic and financial analyses, as well as more complex modeling and empirical analyses. I also assisted them in drafting proposals, reports, document requests, client presentations and other client materials.

My day starts by checking my emails and responding to any requests from managers regarding any assignments. I then work on doing extensive research on the clients we have. That often requires reading a lot of information to extract the needed data based on pre-set criteria. We then run financial models on them to assure for the data accuracy and comparability.  The data is later used in a report submitted by the company to the IRS. As an intern I was assigned to update, edit and draft these reports. In preparing for the report, I wrote industry analysis, economic analysis and regulations write-up to decide on the best method to value the transaction on hand.

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    University of Texas at Austin
    FAC 18
    2304 Whitis Ave. Stop G6200
    Austin, Texas 78712-1508