Multinational corporations are often accused that transfer pricing is used for
A) profit optimization.
B) tax and tariff avoidance.
C) creating unnecessary tension between divisions.
D) social responsibility.

Question

Quizplus · Accepted Answer

Transfer pricing can be used by multinational corporations to shift profits from high-tax countries to low-tax countries, thereby reducing their overall tax liability and avoiding tariffs. This practice is often scrutinized for its impact on tax revenues of countries.

Multinational Corporations Are Often Accused That Transfer Pricing Is Used