In dealing with the corporate business process, taxes are always an issue. The number one business objective is to pay as little tax as possible while adhering to the law.
Reduction of taxes can be achieved through the moving of goods between one company and another. Once this occurs, the act is known as Transfer Pricing.
Based on this information, please answer the following questions:
- Please describe the transfer pricing concept.
- Please state two examples where transfer pricing is used in common business.
- What are the tax and regulatory concerns surrounding the transfer pricing process?
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