BNET Business Dictionary
Business Definition for: Transfer Pricing
- a pricing method used when supplying products or services from one part of an organization to another. The transfer pricing method can be used to supply goods either at cost or at profit if profit targets are to be achieved. This can cause difficulties if an internal customer can buy more cheaply outside the organization. Multinational businesses have been known to take advantage of this pricing policy by transferring products from one country to another in order for profits to be higher in the country where corporation tax is lower.
Additional Resources
- United States Transfer Pricing Noncompliance Penalties.
- This article talks about the scenario, where for the past several years, many countries have promulgated transfer pricing rules in their efforts to ensure that tax revenues are not improperly transferred out of their respective jurisdictions. The United States is no exception to this. This increased attention to transfer pricing...
- White papers 2003-01-01
- Transfer Pricing for the Telecommunications Industry
- Telecommunications is the quintessential global business. As a result, it's difficult to find another industry on which transfer pricing has a bigger impact. Inappropriate transfer pricing policies can expose an organization to serious business risks which give rise to more than just the payment of additional taxes. Get the policies...
- White papers 2005-03-23
- Transfer Pricing for the Telecommunications Industry: Telcos and Transfer Pricing - The Key Issues
- Telecommunications is the quintessential global business. As a result, it's difficult to find another industry on which transfer pricing has a bigger impact. Inappropriate transfer pricing policies can expose organization to serious business risks which give rise to more than just the payment of additional taxes. This report summarizes the...
- White papers 2005-03-23
- Transfer pricing traps.
- Jan 09, 2007 (Intax - ABIX via COMTEX) -- The Australian Taxation Office ATO is keen to monitor transfer pricing issues. The transfer pricing rules aim to ensure that values for international dealings between related parties are established using Jan 09, 2007 (Intax -...
- Research articles 2007-01-09
- Duff & Phelps targets transfer pricing with former KPMG head.
- May 15, 2006 (International Tax Review - ABIX via COMTEX) -- Dan Peters has been appointed the new leader of Duff & Phelps's transfer pricing practice. Peters, former global head of transfer pricing at KPMG, said he intended to hire between five May 15, 2006...
- Research articles 2006-05-15
- [1518] Transfer Pricing Review Work - PS LA 2005/14.
- Byline: Kirk Wilson Sep 13, 2005 (Weekly Tax Bulletin - ABIX via COMTEX) -- Practice Statement Law Administration PS LA 2005/14 on transfer pricing has been released by the Australian...
- Research articles 2005-09-13
- Stay Ahead: Transfer Pricing Services For Life Sciences Companies
- Companies in the different segments of the Life Sciences industry face vastly different transfer pricing challenges. For example, many large pharmaceutical companies have great experience and resources for developing transfer pricing strategies, methodologies, and documentation. But their resources may be spread thin when it comes to responding to transfer pricing...
- White papers 2007-12-17
- International Treasury Back to Basics - The Effect of Transfer Pricing
- Transfer pricing is a fair, but arm's length price assigned to the buying/selling of goods and services between related companies. The main Objectives of this article are to review Treasury's interface with global business operations, describe operating and treasury transactions, introduce and define transfer pricing concepts. Treasury must understand the...
- White papers 2003-01-01
- Transfer Pricing and Electronic Commerce – III
- This article states that transfer pricing can be approached from many directions. The IRS regulations require multifaceted testing to satisfy the best method rule. The pricing rules themselves are straightforward. What is difficult is the data. With regard to e-commerce enterprises, it may take some time for commercial databases to...
- White papers 2002-04-07
- Transfer pricing audits become more frequent.(Brief Article)
- Apr 18, 2005 (International Tax Review - ABIX via COMTEX) The Australian Taxation Office ATO has decided to pay more attention to transfer pricing practices. The ATO said that it will use the Transfer Pricing Review Project to scrutinize the activities of inbound...
- Research articles 2005-04-18
- The effect of the APA and other U.S. transfer-pricing initiatives in Canada and other countries - Advance Pricing Agreement
- I. The Current Controversies in Transfer Pricing A. Overview In transfer-pricing matters, the United States can be likened to a benevolent dictator, stirring controversy by giving with one hand and taking with the other. The latter may be seen to characterize the "super royalty" provision...
- Research articles 1992-07-01
- Impact of Transfer Pricing Regulations on E-Commerce
- However, with the emergence and growth of electronic commerce, the questions of transfer pricing have become more and more important and have raised certain difficulties relating to tax. The ascertainment of the appropriate allocation and apportionment of income and expenses (for example, arising from the cross-border trading of financial products)...
- White papers 2001-11-08
- IRS takes aim at service issues in transfer pricing: two important legal pronouncements that will affect transfer pricing compliance and planning for multinational corporations have come out recently. Two attorneys discuss some of the general highlights a
- This past September, the Internal Revenue Service IRS made headlines when it announced a $3.4 billion settlement in the GlaxoSmithKline GSK case relating to transfer pricing for the U.S. rights to the drug Zantac[TM] as well as some of the pharma This past September, the Internal...
- Research articles 2006-11-01
- KPMG.(fYi)(enforcement of transfer pricing rules)(Brief article)
- A KPMG report finds that taxing authorities around the world are stepping up enforcement of transfer pricing rules, ... A KPMG report finds that taxing authorities around the world are stepping up enforcement of transfer pricing rules, and chemical companies share a common--and pressing--challenge in understanding...
- Research articles 2006-12-01
- International transfer pricing: the taxman cometh.
- A major tax issue that faces modern multinational corporations is cross-border transfer pricing. Some one third of international trade is composed of intra-group transfers, with different national rates of corporate income tax creating possibilities for the loss of national revenues. Some critical tax implications of corporate transfer pricing policies are...
- Research articles 1997-12-01
- 1994 final transfer pricing regulations of the United States
- Recent studies of the U.S. government found that foreign-based companies underpaid taxes on the profits of their U.S. affiliates by inflating the prices for goods and services they pay to their foreign parents. The U.S. government introduce a series of new regulations in recent years to eliminate some abuses arising...
- Research articles 1997-04-01
- Tougher on transfer pricing
- A recent Ernst & Young survey found that transfer pricing-the value assigned to intercompany transfers of goods and services-continues to be the number one tax issue for multinational corporations. It's also an increasingly important issue for governments, judging from the quickening pace of transfer pricing legislation around the world. Just...
- Research articles 1997-11-01
- AUSTRALIAN MULTINATIONALS STRUGGLE WITH TRANSFER PRICING: SURVEY.
- SYDNEY, Nov 6 Asia Pulse - Many Australian multinational companies are struggling with the issue of transfer pricing, hurting shareholder value as a result, according to a new survey. Shareholder value was suffering as Australian companies lagged behind the United States on the issue of transfer pricing, the...
- Research articles 2003-11-06
- Transfer pricing - practical issues in the Asia Pacific region: Part 1.
- Byline: Agnes Lingane Apr 12, 2006 (The Tax Specialist - ABIX via COMTEX) -- The OECD first issued its guidelines on transfer pricing back in 1979, stating that the "arms length" principle was the preferred method. So far as countries in the Asia...
- Research articles 2006-04-12
- Can CRA apply transfer pricing rules to noncommercial transactions?
- Byline: Jack Bernstein Oct 11, 2005 (Tax Notes International - ABIX via COMTEX) -- Global standards established by the OECD form the basis of Canada's transfer pricing rules.Article nine of the OECD model contains the ...
- Research articles 2005-10-11
