Companies may approach tax authorities to obtain an Advanced Transfer Price Arrangement to ascertain if a proposed transfer pricing arrangement is acceptable.

Question

Quizplus · Accepted Answer

This statement is true. Companies may choose to request an Advanced Transfer Price Arrangement from tax authorities in order to obtain an indication of whether their proposed transfer pricing arrangement will be acceptable or not. This can provide greater certainty and reduce the risk of future disputes with tax authorities.

Companies May Approach Tax Authorities to Obtain an Advanced Transfer