An agreement between the tax authority and the taxpayer on the transfer pricing methodology to be applied to any apportionment of income, deductions, credits, or allowances between two or more members of an organization is known as

Question

Quizplus · Accepted Answer

An advance pricing agreement (APA) is a formal agreement between a taxpayer and the tax authority regarding the transfer pricing methodology for any transactions between associated enterprises. It provides certainty and reduces the risk of disputes between the taxpayer and tax authority. A corporate agreement or globalization agreement are not recognized terms in tax law, and a taxation agreement could refer to any number of agreements related to taxes.

An Agreement Between the Tax Authority and the Taxpayer on the Transfer