Summarizes and analyses the 2003 Ernst & Young Transfer Pricing Global Survey. The Survey has revealed that the majority of the MNEs have experienced transfer pricing audits in the last couple of years. It is not strange, therefore, that transfer pricing has remained the most important international tax issue that MNEs face. These audit results reflect the impact of new transfer pricing legislation introduced in many countries, and the increased transfer pricing knowledge that tax authorities have gained over time. On the other hand, it has appeared that still a majority of MNEs view transfer pricing as a tax compliance issue instead of a reflection of the required alignment between business and tax.