Menu
- 4 Marks
Question
What is the principle underlying the concept of Transfer Pricing? (4 marks)
Answer
The principle is that the price used in invoicing to unrelated person should be used
in invoicing to a related party to help reflect the market price. The principle is that
prices reflect arm’s length transactions.
- Tags: Arm's Length Principle, Related Party Transactions, Transfer Pricing
- Level: Level 3
- Topic: International taxation
- Series: NOV 2021
- Uploader: Joseph