Thea authora ofa thea articlea provideda hasa alsoa aa verya interestinga stylea ofa writing,a thata
engagesa thea reader.a Thea topica ina questiona isa transfera pricing,a whicha isa ana “accountinga
practicea thata representsa thea pricea thata onea divisiona ina aa companya chargesa anothera divisiona
fora goodsa anda servicesa provided.”a (Shobhit,a 2023).a Ita isa aa legala methoda widelya useda bya
mosta multinationala companiesa sucha asa Metaa anda Applea (asa thea articlea describes),a thea goala
isa toa allocatea incomea toa jurisdictionsa witha lowera taxa ratesa anda expensesa toa jurisdictionsa
witha highera taxa rates,a therebya minimizinga thea overalla taxa liability.a Fora whata Ia found,a thea
structuresa thata leada companiesa toa engagea ina transfera pricinga area resultinga froma thea
differencea ina taxa ratesa anda regulationsa ofa differenta jurisdiction.a Thisa allowsa fora companiesa
toa use,a fora example,a intellectuala propertya anda intangiblea assetsa toa makea upa mosta ofa theira
marketa value,a thisa includesa branda namea anda proprietarya technologya (Shobhit,a 2023).a
Thesea assetsa cana bea difficulta toa valuea accurately,a anda theya cana bea legallya owneda bya aa
subsidiarya ina aa low-taxa jurisdiction.a Thea subsidiarya thena chargesa othera partsa ofa thea
companya fora thea usea ofa thisa IP,a effectivelya shiftinga profitsa toa thea low-taxa jurisdiction.a
Anothera taxa structurea thata relatesa toa thisa topica isa thea intra-companya transactions.a
Multinationala companiesa frequentlya havea complicateda structuresa witha numerousa
subsidiaries.a Thesea subsidiariesa frequentlya conducta businessa witha onea another,a sucha asa
sellinga goodsa ora services.a Pricesa chargeda ina intra-companya transactionsa cana bea modifieda ina
ordera toa movea profitsa toa low-taxa jurisdictions.a Thesea area thea costsa referreda toa asa "transfera
pricing."a (Tuovila,a 2022)
Now,a Ia agreea witha thea practicea ofa transfera pricing,a ifa ita stateda withina thea legala framework.a Ia
understanda ita isa aa complicateda topic,a however,a thea reasona therea area lawsa thata allowa fora
companiesa toa engagea ina thisa legala practicea isa toa encouragea commerce.a Privatea companies,a
willa usea theira resourcesa toa interpreta thea lawa toa theira favoura asa theya havea ana obligationa toa
theira shareholdersa toa maximizea profits,a anda reducinga taxa liabilitya isa aa parta ofa that.a Ona thea
othera hand,a Ia understanda thata ita cana leada toa significanta lossa ofa taxa revenuea fora countries,a
particularlya thosea wherea thea economica activitya isa takinga place.a Ina turna thisa cana resulta ina aa
wholea differenta cana ofa worms.
References:
Shobit,a S.a (2023).a Transfera pricing:a Whata ita isa anda howa ita works,a witha examples.a Investopedia.a
https://www.investopedia.com/terms/t/transfer-pricing.asp
TUOVILA,a A.a (2022).a Transfera price:a Whata ita is,a howa it'sa used,a anda examples.a Investopedia.a
https://www.investopedia.com/terms/t/transferprice.asp
