30 seconds with Leon Liu, Senior Finance Manager, Lear Corporation

Leon Liu is the latest interview in our ’30 Seconds With’ series. A finance expert in the Asian market, we took the opportunity to catch up with Leon before he speaks at TP Minds Asia 2016 this September.
What are you currently spending most of your time on?
Currently I am spending most of my time on tax accounting compliance, and a restructuring project.
What is the biggest challenge facing Transfer Pricing executives in your particular industry at the moment?
Compliance with China’s new Transfer Pricing rules. Also, co-ordinating with global HQ for CbCr (Country by Country Reporting).
What should a successful post-BEPS transfer pricing strategy look like?
I see this as a four step process.
- Wait and see (in regards to the implementation of BEPS action plans in individual countries)
- Understand and communicate (1. the business of the company; 2. the BEPS impacts to the company in affected jurisdictions within the company, policy maker and accounting firms)
- Prepare and comply (local rules and regulations, coordinate with HQs’ requirements)
- Update and automate (update the documentation process, automate information collection and documentation process)
Arm’s length or formulary apportionment?
Both are arbitrary. It’s always hard to define “reasonable”, yet I believe formulary apportionment looks more scientific. However, it takes much more effort to explain and demonstrate to the respective tax authorities in different jurisdictions, and may expose too much confidential business information.
Which areas of TP do you think the next wave of transfer pricing controversy will come from?
I think it will begin in value chain. This could include: formulary apportionment, location saving and DEMPE of IP.
Which jurisdictions are likely to be keeping the Head of TP awake at night?
China.
What advice would you give an aspiring TP professional?
Make sure your story is intact.
You’re attending and speaking at IBC’s TP Minds Asia in Singapore this September. What are you most looking forward to?
For the September session in Singapore, I’d like to hear what other companies are doing to prepare for the new era (post-BEPS).
Tell us a little known fact about yourself.
Here are several: 11 years in tax, 5 in firm, 6 in industry. I’ve witnessed the fast development of tax policy change in China and the world. I currently focus on tax in China, coordinating with the region and global affiliates. I’m also a member of TEI, and I am a fellow of ACCA.
Leon started with a Big 4 accounting firm with practice in China individual income tax, tax accounting and inbound/outbound investment tax structure.
With over 11 years’ practice in tax profession, Mr. Liu is passionate about the tax practice in China and have build up a wide network among the tax practitioners in professional firms and industries in China.
During the past two years of Leon’s TEI membership, he has assisted in successful TEI China events including TEI‐PwC National Tax Conference, TEI‐KPMG US Tax Training, TEI‐CCH National Tax Forum and TEI‐Integral HR Topic Webinar, etc. Leon demonstrated good organization skills, responsibility and passion to the TEI organization. Mr. Liu holds a bachelor degree in accounting and is an FCCA.