The transfer pricing rules target multinational companies that use the price-setting process in intercompany transactions toreport low taxable income in high-tax countries and high taxable income in low-tax countries.

Question

Quizplus · Accepted Answer

Transfer pricing rules are designed to prevent multinational companies from manipulating prices in intercompany transactions to shift profits to low-tax jurisdictions and minimize their overall tax liability.

The Transfer Pricing Rules Target Multinational Companies That Use the Price-Setting