There is no perfect transfer pricing system.

Question

Quizplus · Accepted Answer

Transfer pricing involves determining the price at which goods, services or intangible property are transferred between related entities, which can be complex and subjective. Therefore, it is difficult to develop a transfer pricing system that can address all issues and avoid potential abuse. There are many factors that can influence transfer pricing, such as differences in tax rates, local market conditions, and management strategies. As a result, no single transfer pricing system is perfect, and companies must carefully consider their options to ensure compliance with regulations and minimize tax liabilities.

There Is No Perfect Transfer Pricing System