4/29/2016 3:24:06 AM
For the following questions related to Transfer Pricing, International Considerations and Strategy; write a paper in which you have to response for all following the APA guidelines.
Q1. Define the word transfer price. Explain why is the issue of transfer pricing of strategic apprehension to organizations?
Q2. Basically, what makes income tax planning opportunities as regards to the determination of transfer pricing in the multinational setting? Explain where could one go to get information concerning stated income- tax rates for different countries?
Q3. Suppose that the transfer price related by means of the sale to the Irish subsidiary is $1,200, and that the transfer price for the sale to U.S. parent company is $1,600. In this condition, determine the income tax paid by each of the given: (i) The Italian subsidiary (ii) The Irish subsidiary (iii) the U.S. parent company and (iv) the consolidated entity (that is, worldwide tax paid)?