Transfera pricinga isa wherea aa companya sellsa itsa goodsa anda servicesa internallya withina businessesa anda
betweena subsidiariesa operanga undera thea samea control/ownership.a a Thisa amounta isa usuallya ina
accordancea witha thea marketa pricea fora thea goodsa ora services.a a Whena theya doa nota chargea thea marketa
pricea anda choosea toa chargea lessa thana thea marketa price,a theya cana shia thea incomea froma onea companya
toa thea subsidiary,a whicha maya bea ina aa lowera taxa country,a thusa reducinga thea amounta ofa taxesa theya
woulda havea toa pay.a a Secona 482a statesa thata thesea typesa ofa transaconsa shoulda yielda thea samea
resultsa asa ita woulda havea realizeda ifa thea transacona undera thea samea circumstancesa witha ana
uncontrolleda partya woulda havea been.a a Ifa thesea transfersa area nota valueda correctly,a nanciala
statementsa maya needa toa bea restateda anda penalesa ora feesa coulda bea applieda fora thea misstatement.a a
Corporatea protsa area toa bea taxeda ina thea jurisdicona thata thea economica valuea isa created.a a
Ifa thisa isa donea appropriatelya anda thea valuesa area ina accordancea witha thea marketa value,a Ia doa nota seea aa
problema witha aa companya doinga this.a a Ita isa whena aa companya ndsa aa loopholea anda exploitsa ita toa evadea
taxesa thata therea isa aa problem.a a Ina thea arclea wea reada “Whata Facebooka anda Applea cana teacha youa
abouta transfera pricing”,a thea issuea Facebooka isa facinga isa thata thea IRSa isa quesoninga thea pricea Facebooka
valueda theira non-U.S.a anda Canadaa IPa usea as.a a Thisa cana bea trickya toa determinea anda wherea Facebooka
musta provea theya appropriatelya valueda thea price.a a Facebooka mighta nota havea donea anythinga wrong,a
theira transfera pricinga justa raiseda suspiciona froma thea IRSa toa invesgatea ita anda comea upa witha aa
dierenta conclusion.a a Facebooka isa withina itsa rightsa toa disagreea anda appeala thea IRSa decisiona anda goa
beforea thea taxa courts;a especiallya ifa theya havea appropriatelya documenteda theira guresa anda havea nota
maliciouslya trieda toa evadea taxes.
Transfera pricinga isa thea pricinga thata existsa betweena corporatea relateda partya internaonala transacons.a
Thisa happensa whena aa corporaona transfersa thea valuea ofa ana asseta toa aa lowera taxa jurisdicon.a
Accordinga toa Worstalla (2016),a "whena thosea foreigna rightsa area sold,a theya musta bea solda ata fulla
value...youa musta sella thema ata thea fulla valuea toa youra foreigna subsidiary,a thea incomea youa geta froma thata
salea becomesa aa taxablea prota insidea thea U.S."a (Worstall,a 2016).
a ADPa asa aa Franchisea Implementaona Specialist,a wherea Ia teacha smalla businessa ownersa howa toa runa
theira owna payrolla witha ADP'sa RUNa soware.a a alsoa tryinga toa establisha mya owna praccea providinga
bookkeeping,a taxa preparaon,a anda mobilea notarya servicesa asa aa sourcea ofa sidea income.a Ia knowa thata
thisa coursea willa bea aa valuablea resourcea fora expandinga mya taxa knowledgea anda becominga aa beera
servicea providera toa mya clients.
Aera readinga thea arcle,a Ia stronglya agreea witha Sglitz.a Ia ama awarea thata Ia havea personala biasa anda
ideologya thata makea mya posiona ona thisa quitea rigid.a Ia personallya feela thata corporaonsa shoulda nota
havea thea abilitya toa avoida payinga taxa usinga loopholesa anda movinga moneya around.a Ina mya eyesa Ia seea
thisa asa lilea morea thana moneya laundering.a Worstalla menonsa thata thea purposea ofa thea taxa systema isa
toa taxa corporaonsa anda protsa wherea thea economica acvitya takesa place.a Betweena thesea linesa Ia cana
almosta heara hima saya ina thea samea breatha thata thea purposea ofa aa corporaona isa toa maximizea thea
wealtha ofa itsa shareholders.a Ia fundamentallya disagree;a Ia believea thea purposea ofa thea taxa systema isa toa
funda thea government,a whicha isa responsiblea fora supporng,a maintaining,a anda improvinga thea qualitya
ofa lifea fora itsa cizens.a Ia believea thea purposea ofa aa corporaona shoulda bea toa maximizea thea wealtha ofa
ALLa thea individualsa whoa parcipatea ina itsa existencea rathera thana exploinga thea laboura ofa thea lowesta
paida employees,a anda toa servea aa sociala purposea beyonda shareholdera wealth.a
Alla ofa thisa isa toa saya thata Ia doa nota believea transfera pricinga isa ethical.a (Ia hardlya thinka taxa avoidancea isa
ethical,a either).a Yes,a therea area certainlya internaonala corporaonsa thata havea globala operaonsa anda
therea needsa toa bea aa waya fora thema toa organizea theira incomea anda avoida doublea taxaon.a Buta ita isa tooa
easya toa bea useda unethicallya bya corporaonsa thata area justa avoidinga taxes,a nota purposefullya producinga
goodsa anda servicesa ina othera countries.
Worstall,a T.a (2016,a Julya 29).a Whata Facebooka anda Applea cana teacha youa abouta transfera pricing.a Forbes.a
hps://www.forbes.com/sites/mworstall/2016/07/29/facebooks-fun-with-transfer-pricing-and-joe-
sglitz-doesnt-understand-apples-tax-at-all/?sh=4bc817763838
Worstall,a Tima (Julya 29,a 2016).a a Whata Facebooka anda Applea cana teacha youa abouta transfera pricing.a a
hps://www.forbes.com/sites/mworstall/2016/07/29/facebooks-fun-with-transfer-pricing-and-joe-
sglitz-doesnt-understand-apples-tax-at-all/?sh=586602783838
