Transfer Pricing

Please choose the most appropriate answer for each sentence.
  • 1

    When one part of a multinational organisation in one country transfers (that is, .....) goods, services or know-how to another part in another country, the price charged for these goods or services is called 'transfer price'.

  • 2

    According to Manfred Davidmann, this may be a purely ..... figure, meaning by this that it may be unrelated to costs incurred, to operations carried out, or to added value.

  • 3

    In other words, it is possible for a multinational company to minimise its ..... for corporation tax by transfer pricing.

  • 4

    This is done without any change to procedures, operations or added value; it is done by merely changing book ......

  • 5

    This tax ..... is legal until governments legislate to prevent this practice.

  • 6

    If a multinational has increased its profits by this method, then the government, whose expenses have not changed, must make up this ..... elsewhere.

  • 7

    Its citizens pay more tax, the government can spend the same amount as before, and the multinational's profits have increased: in other words, the multinational's increased profits arise from money which is in ..... collected by the government from its taxpayers.

  • 8

    This is a matter far ..... from earning reasonable profits on needed quality goods and services at reasonable prices in open competition with other corporations.

  • 9

    It seems that at times some top US companies pay no federal income tax at all or obtain an overall ......

  • 10

    Multinationals need to be made accountable to elected representatives of the people, for their policies and for acting for or against the national ......

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