Tax Optimization Through Transfer Pricing, Common & Manipulative Practices

Abstract

When an associate enterprises transfer goods, intangible property then the prices at which the transfer takes place would be deemed as transfer price. The same has been defined as the Practice which is paid during a business transaction, which could be tangible property, goods or services between companies under which the price of the same can be controlled. The paper dwells into the ways through which multinational corporations use transfer pricing method to optimise their profits and at the same time use manipulative ways to evade tax.