2.99 See Answer

Question: A number of terms are listed below: /

A number of terms are listed below:
A number of terms are listed below:


Required:
Select the terms from the above list to complete the following sentences.
The CRA constrains global transfer-pricing choices, and provincial tax authorities constrain the interprovincial transfer-pricing choice of management teams. A wise team will undertake an _ ______ ________ _____ ___________ (_ __ ) to avoid future tax liabilities. There are two interprovincial transfer-price alternatives when no ______ _____ _____ exists. The alternatives are either ____ _____ , which is a cost plus approach, or __________ transfer prices that fall between a market and cost-plus price. Of course a _________ price may be either full absorption or variable cost-based, and in the transfer the same company may use _ ___ _______. The transferring division charges at a cost-based price while the receiving division pays at a market-based price. The difference is billed to a common corporate account rather than to the divisions. This method reduces _ ___ __________ problems between transferring divisions. There are three multinational corporate transfer-price alternatives. The respective tax authorities scrutinize these _ ______ _____ ___________ very carefully to ensure their jurisdictions receive the appropriate tax payments from each party in the transfer. The alternatives are the ___________ ____ _____ (CUP), ______ _____ (___), _________ (___), _____________(___), and _____________ ___ ______ _______ (____). In addition to negotiating APA with governments, corporations also minimize taxes by establishing legitimate subsidiaries in ___ ______ that share information with other governments.

Required: Select the terms from the above list to complete the following sentences. The CRA constrains global transfer-pricing choices, and provincial tax authorities constrain the interprovincial transfer-pricing choice of management teams. A wise team will undertake an _ ______ ________ _____ ___________ (_ __ ) to avoid future tax liabilities. There are two interprovincial transfer-price alternatives when no ______ _____ _____ exists. The alternatives are either ____ _____ , which is a cost plus approach, or __________ transfer prices that fall between a market and cost-plus price. Of course a _________ price may be either full absorption or variable cost-based, and in the transfer the same company may use _ ___ _______. The transferring division charges at a cost-based price while the receiving division pays at a market-based price. The difference is billed to a common corporate account rather than to the divisions. This method reduces _ ___ __________ problems between transferring divisions. There are three multinational corporate transfer-price alternatives. The respective tax authorities scrutinize these _ ______ _____ ___________ very carefully to ensure their jurisdictions receive the appropriate tax payments from each party in the transfer. The alternatives are the ___________ ____ _____ (CUP), ______ _____ (___), _________ (___), _____________(___), and _____________ ___ ______ _______ (____). In addition to negotiating APA with governments, corporations also minimize taxes by establishing legitimate subsidiaries in ___ ______ that share information with other governments.





Transcribed Image Text:

market-based price cost-based advance transfer price arrangement (APA) comparable uncontrolled price negotiated cost-plus method (CPM) goal congruence related-party transactions tax havens cost-plus dual pricing profit split method (PSM) resale price method (RPM) transactional net margin method (TNMM)


2.99

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