Question
Why is global transfer pricing becoming increasingly
important for multinationals?Solution
Transfer pricing relates to the price, non-arm’s length companies located in different jurisdictions, charge each other for goods and services. In a global economy dominated by transnational corporations, global transfer pricing is becoming increasingly important for multinationals. Global transfer pricing helps corporations develop transfer pricing policies that maximise the potential for increasing the company’s after-tax income, while minimising the likelihood that it will be subject to tax adjustments and penalties.
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Select the correct mirror image of the given figure when the mirror is placed at MN as shown below.
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