transfer pricing

British  

noun

1. the setting of a price for the transfer of raw materials, components, products, or services between the trading units of a large organization

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Example Sentences

The dispute centers on a 2012 IRS audit into transfer pricing, a method used by companies to shift profits to tax havens and avoid the US corporate tax rate.

From Seattle Times

It said the authorities were investigating issues related to international taxation and transfer pricing of BBC subsidiary companies.

From Washington Times

In recent years some international companies had come under the income tax scanner regarding transfer pricing rules, but several media organisations and rights' group criticised the ongoing search at the BBC.

From Reuters

The survey is being carried out to investigate issues related to international taxation and transfer pricing of BBC subsidiary companies, the agency said.

From Seattle Times

To achieve the three traditional goals of tax reform — greater equity, efficiency and simplicity — we should consider exposing the role of money in legislation, eliminating different tax rates for different kinds of income, eliminating different tax rates for different forms of organizations, eliminating transfer pricing, using refundable tax credits instead of deductions, imposing inheritance taxes instead of estate taxes and providing adequate funding for the Internal Revenue Service.

From Washington Post