Overview
You will prepare a PowerPoint presentation for this assignment. Download the Unit 4 IP Template to complete this assignment.
In this assignment, you will demonstrate your understanding of multinational taxation by exploring transfer pricing and tax planning implications.
- What is transfer pricing? Why is transfer pricing important to the following?
- Internal Revenue Service (IRS)
- International trade
- Why does a company use transfer pricing? Name at least 2 benefits and 2 drawbacks to transfer pricing.
- What are the tax planning implications of transfer pricing (e.g., recognition of gains and losses)? Is it ethical for a company to utilize transfer pricing to its benefit?
- How do the Organisation for Economic Co-operation and Development (OECD) guidelines assist in resolving transfer pricing disputes?
- Research an organization that currently uses or has used transfer pricing, and explain why you think it chose to do so.