A(n)________ is a binding agreement between a multinational and the taxing authority to obtain approval for a specific transfer price for a number of years.
A)Tax Treaty
B)Advanced Transfer Pricing Arrangement
C)Revenue Ruling
D)Dual Price Ruling
E)International Transfer Price

Question

Quizplus · Accepted Answer

An Advanced Transfer Pricing Arrangement (ATPA) is a binding agreement between a multinational and the taxing authority to obtain approval for a specific transfer price for a number of years. This helps to avoid disputes about transfer pricing and provides certainty to both the company and the taxing authority. Tax Treaty is a bilateral agreement between two countries to avoid double taxation, Revenue Ruling is an official interpretation by the IRS on how tax laws apply to specific situations, Dual Price Ruling is not a recognized term in taxation, and International Transfer Price is a general term used to refer to the price at which goods or services are transferred between related parties in different countries.

A(n)________ Is a Binding Agreement Between a Multinational and the Taxing