The "transfer pricing" provision attempts to identify the taxable income had the transaction been between unrelated parties dealing at arm's length.

Question

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This is a correct statement. Transfer pricing provisions aim to prevent multinational companies from unfairly shifting profits from high-tax jurisdictions to low-tax jurisdictions by setting prices for transactions between related parties. To ensure fairness and accuracy in tax assessment, the transfer pricing provision aims to identify the taxable income the transaction would have generated had it taken place between unrelated parties at arm's length.

The "Transfer Pricing" Provision Attempts to Identify the Taxable Income