In interstate transactions, transfers can reduce an organization's tax liability when the selling division is in a lower tax jurisdiction than the buying division.

Name: In interstate transactions, transfers can reduce an organization's tax liability when the selling division is in a lower tax jurisdiction than the buying division.
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Transfer pricing can be used to allocate income to divisions in lower tax jurisdictions, potentially reducing overall tax liability.

In Interstate Transactions, Transfers Can Reduce an Organization's Tax Liability