Tag: Transfer Pricing

Transfer pricing refers to the determination of prices at which goods, services and intangible properties are transacted between related parties. When unrelated parties deal with each other, independent market forces shape the commercial pricing of such transactions. However, in transactions involving related parties, their commercial and financial relations may lead to the setting of prices that deviate from independent commercial prices. This results in distortion of the profits derived by each related entity to the transactions as well as in the tax liabilities of each. The distorting effects of non-arm’s length transfer pricing is of greater concern to tax authorities ... Read more