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We created profit centres and developed a transfer pricing system.
Now we get to the true transfer pricing problem.
The practice, known as transfer pricing, is one way oil and gas companies avoid paying higher federal taxes, he added.
Transfer pricing relates to which jurisdiction a company is paying tax.
In response, the Administration pointed to the elimination of administrative transfer pricing rules.
As a hypothetical example of transfer pricing issues, consider a company with two subsidiaries.
Big companies choose transfer pricing and finding of a home for their capital as options enabling them to avoid tax.
Most sophisticated tax codes now prevent transfer pricing schemes of this nature.
Transfer pricing might be one reason for this.
Theoretical transfer pricing is all very well, but in practice not many companies will know their marginal cost and revenue functions.
Not all practical methods of transfer pricing will meet these aims at the same time and compromises may have to be made.
About 60% of capital flight from Africa is from improper transfer pricing.
Shifting a brand offshore is a classic abusive transfer pricing move to avoid tax.
Where connected persons engage in transactions between themselves it may be necessary to consider transfer pricing implications.
Many jurisdictions have adopted broadly similar transfer pricing rules.
Lobbying pertaining to tax havens and associated transfer pricing has also been criticized.
The setting of the amount of related party charges is commonly referred to as transfer pricing.
Over 60 governments have adopted transfer pricing rules.
This second article looks at more complicated set-ups and discusses practical methods of transfer pricing.
When multinationals trade internationally with their own subsidiaries they use a mechanism called transfer pricing.
Illegal practices include smuggling, transfer pricing, under valuing and misclassification of species.
Some jurisdictions extend the audit requirements to include opining on such tax issues as transfer pricing.
This has reportedly sparked a French investigation into Google's transfer pricing practices.
Countries may limit the use of foreign currency within their borders, reducing the effect of transfer pricing (see above).
The logic of global production is again operating, but through transfer pricing and the use of captive suppliers.