Profit Distribution Optimisation at Wandfluh

Abstract

Currently, the Wandfluh Group is facing the problem of generating profits in high-tax countries whereas lower profits or even losses are generated in low-tax jurisdictions, thus not reaching an optimal distribution of profits. Furthermore, the company is considering an organisational change to a more efficient and harmonised organisational structure. It is therefore of interest for Wandfluh to get an overview of the current situation as well as recommendations regarding organisational structure, variable pay, and transfer pricing for the future development of the company.