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Transfer-Pricing

TRANSFER PRICING IN INTERNATIONAL TAX

Transfer pricing is probably one of the most important issues in international taxation. Transfer pricing happens whenever two companies that are part of the same multinational group trade with each other and establish a price for the transaction.

Transfer pricing as such is not illegal, however, it becomes illegal or abusive if transfer mispricing takes place to shift profits into low tax jurisdictions, also known as transfer pricing manipulation or abusive transfer pricing.

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