Transfer mispricing

Transfer mispricing, or transfer pricing manipulation refers to trade between related parties at prices meant to manipulate markets or to deceive tax authorities.

As a tax avoidance method, it is frequently adopted by the MNCs and is manipulation of price in intra-firm exchange. The basic objective in this method is to maximize the company’s overall after-tax profit rather than the profit of individual subsidiaries.

December 4, 2017
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