Economics of Transfer Pricing

Abstract: This 16 page report discusses the economics of transfer pricing. Transfer pricing is the process through which the associated enterprises set prices for the transfer of goods, services, finance and intangible assets between them. Companies can inexpensively sell goods to their parent firms in another country, thereby booking losses and avoiding local taxes, through the transfer of profits abroad. Transfer prices also serve to establish the internal profit structure on which taxes are paid. Bibliography lists 14 sources.

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Catagory: Money & Banking / Corporate Finance

Subcatagory: Accounting & Personal Finance

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