Transfer pricing has emerged in the global economy as one of the most important tax issues for multinational companies. Tax authorities increasingly choose to focus on transfer pricing when auditing the tax returns of multinational companies as tax authorities become cognizant of the fact that commercial relations within a multinational group may fail to refl ect the arm’s length principle.
We highlight different examples of circumstances that are likely to trigger a transfer pricing audit or adjustment in related party transactions involving management services, sale of goods and financial assistance.
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