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Commerce · Q460

Income Tax and Corporate Tax

Graduate and Post Graduate · Commerce · question 460

Q460

Which of the following statements correctly the approach of customs authorities and direct taxation authorities, when it comes to setting a transfer price?

A.
Both authorities will want to set the lowest possible transfer price
B.
The customs authorities will want to set a high transfer price while the direct taxation authorities will want to set a low price
Answer
C.
Both authorities will want to set the highest possible transfer price
D.
The customs authorities will want to set a low transfer price while the direct taxation authorities will want to set a high price

Answer: Option B

Solution

Answer: Option B
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