Transfer pricing has been identified as a major problem for multi-national entities.This refers to:

Question

Quizplus · Accepted Answer

Transfer pricing refers to the pricing of goods and services exchanged within a corporate group. The problem arises when companies set prices artificially high or low to shift profits between subsidiaries in different countries, in order to minimize their overall tax liability. This can result in significant revenue losses for governments and can be seen as a form of tax avoidance.

Transfer Pricing Has Been Identified as a Major Problem for Multi-National