Assignment 4: Transfer Pricing - Research Paper Example

Extract of sample
Assignment 4: Transfer Pricing

The U.S. has an aggressive transfer pricing policy environment as administrators and legislators pursue to lure foreign investment. Transfer prices entail changes made between controlled (or related) entities such as branches and companies that can be either wholly or majority owned by a parent company. The paper explores diverse scenarios of transfer pricing that an entity can pursue to minimize the tax burden. Discussion Based on their earnings and transactions, it may be rewarding for U.S. corporations operating offshore to launch separate foreign entities to conduct business abroad. In the event that a U.S. corporation operates abroad as a foreign corporation and reinvests its foreign earnings offshore, then the U.S. income tax can be deferred until the income may be repatriated in the form of dividend. Similarly, a U.S. corporation (with the exclusion of a Subchapter S corporation) can claim a credit for foreign income taxes paid, which can avert the situation of income getting taxed twice (by both the U.S and the foreign jurisdiction). Another approach in which companies can alleviate the tax burden centers on seeking ways to generate wealth within countries with lower tax rates (Collins, Chamberlin, & Hirsch, 2012). For instance, a multination labeled as USAco, based in the U.S., manufactures and sells cars within the U.S. ...Show more


Transfer Pricing Author Insttitution Transfer Pricing Introduction Transfer pricing represents an intricate yet interesting challenge to MNCs, who ought to establish suitable prices at which goods, services, intellectual property, and financial instruments are transferred among the affiliated entities…
Author : erich15
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Assignment 4: Transfer Pricing"
with a personal 20% discount.
Grab the best paper

Related Essays

Assignment 4 for CLS325
Otherwise called as ‘indie’ films, these are almost always made beyond the control or influence of the major film studios in any country. In the United States, indie films are those movies produced by individuals or small production outfits that are not under the manipulation of the big players in Hollywood.
8 pages (2000 words) Coursework
Responsibility Accounting and Transfer Pricing
For example, a metal fabrication press, which bends and shapes metal, was bought seven years ago for $522,000. The company will add l9 percent to this cost, representing the change in the wholesale price index over the seven years. This new, higher cost figure is depreciated using the straight-line method over the same l2-year assumed life (no salvage value).
4 pages (1000 words) Math Problem
Assignment 4: Estate Tax
The responsibility of IRS includes collection of taxes in US and enforcing the Internal Revenue Code that is framed by the US federal government. Currently IRS has divided its interest and audit functions under four divisions, namely the Large and International Business, the Small Business and Self-employed, Wages and Investment division and the Government organizations (exempted from tax).
6 pages (1500 words) Essay
Assignment 3: International Taxation and Foreign Tax Credits
A taxpayer could establish a partnership kind of business or a corporation. For these types of organizations, income taxes on the earnings realized will be “passed through” to the shareholders, who pay them on their yearly tax returns. If he establishes a corporation, it will mean that the corporation pays income taxes earlier on income, while the shareholders pay taxes separately on those earnings upon distribution as dividends.
4 pages (1000 words) Research Paper
International Taxation - Transfer Pricing
[Shaxon, N. (2012)] In order to acquaint with the concept of transfer pricing, consider two companies, that is a parent companies and a subsidiary company or two subsidiaries that have the same parent company, actively involved in trading with each other.
8 pages (2000 words) Research Paper
Pricing Decisions
Article 3 focuses on defining pricing strategies for specific corporate objectives. Article 4 aims at studying both usage-based and fixed pricing schemes in a competitive scenario where the company is incurring a transaction cost of monitoring usage on the implementation of usage-based pricing.
4 pages (1000 words) Essay
Pricing Decisions
The agony is attributed to the fact that there are numerous variables and factors to be considered before arriving at a pricing decision. The underlying five articles seek to substantiate the efficacy of certain practical models used in actual context as tools for making pricing decisions.
4 pages (1000 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email