Transfer pricing is the practice by MNCs of changing internal prices in order to minimize the firm's global tax liabilities.

Question

Quizplus · Accepted Answer

Transfer pricing involves setting prices for transactions between subsidiaries or divisions of the same multinational corporation across different countries, and it can be used to shift profits to jurisdictions with lower tax rates, thereby minimizing the firm's overall tax liabilities.

Transfer Pricing Is the Practice by MNCs of Changing Internal