In order to reduce the risk from a transfer pricing/tax audit, many companies adopt an _______ with the tax authorities.

Question

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An advance pricing agreement (APA) is a formal agreement between a taxpayer and a tax authority on an appropriate transfer pricing methodology for a set of transactions over a fixed period of time. Adopting an APA with tax authorities can help to reduce the risk of transfer pricing/tax audit by providing clarity and transparency on how to apply transfer pricing rules to cross-border transactions.

In Order to Reduce the Risk from a Transfer Pricing/tax