The transition to a Shared Service Operating model typically involves the creation of new Group-owned Legal Entities (LEs). These LEs may or may not be domiciled in the same location as that of the current legal entities providing the services. While some of these entities are setup as asset holding entities for the purposes of tax efficiency, others are setup to consolidate staff or vendor contracts to maximise procurement and productivity efficiency gains respectively.

Such a structure while delivery financial benefits to the wider organisation, typically results in adding layers of complexity to the Finance Team responsible for managing and reporting on this costbase. The additional demands are specifically in relation to the computation of intercompany charges. These charges need to be robust, justifiable and compliant with globally accepted Transfer Pricing policies.