KPMG claims that its recently-obtained patent (U.S. Patent 11,720,842) enhances the historically tedious and error-prone transfer pricing process by leveraging artificial intelligence (AI) to automate and mine data, reducing the number of discrepancies, tax authority audits, controversies, and potential fines. The technology allegedly helps companies with tax planning purposes related to OECD's BEPS Pillar Two, allowing them to identify areas where changes can be made to optimize their tax strategy.
Transfer pricing benchmarking helps multinational enterprises comply with transfer pricing rules and regulations, including review of hundreds of business descriptions and financial statements to compile a list of companies with comparable sets of data.
The patent marks an effort to protect software related to tax technology solutions as well as the growing appetite for patenting AI solutions.
KPMG LLP, the audit, tax and advisory firm, is using its newly awarded US Patent No. 11,720,842, "System and Method for Identifying Comparables" (the '842 Patent), together with artificial intelligence (AI), to help companies remain compliant and ultimately protect them from potential tax audits.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
