A strategy used to reduce tax liabilities by pricing goods and services within a group structure in way that it does not reflect the arm's length transaction_______________.
A)Thin Capitalization
B)Repatriating Profits
C)Transfer Pricing
D)Tax haven

Question

Quizplus · Accepted Answer

Transfer Pricing is the strategy used to reduce tax liabilities by setting prices for transactions within a group structure that do not necessarily reflect market prices (arm's length transaction). This can be used to shift profits to lower-tax jurisdictions.

A Strategy Used to Reduce Tax Liabilities by Pricing Goods