What is the basis of the government legislation to restrict a company's ability to shift income via transfer pricing?

Question

Quizplus · Accepted Answer

The basis of government legislation to restrict a company's ability to shift income via transfer pricing is that transfer prices should be the same as those in an arm's length transaction. This ensures that transactions between related parties are conducted as if the parties were unrelated, preventing companies from manipulating prices to shift profits to lower-tax jurisdictions.

What Is the Basis of the Government Legislation to Restrict