ACCA F5 Transfer Pricing Example 1

Comments

1. rafalkom says

   August 26, 2017 at 7:18 pm

   Very useful video to understand tax avoidance as well 🙂

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   • John Moffat says

     August 27, 2017 at 10:19 am

     Thanks for the comment (although the tax aspects are outside the syllabus for Paper F5 🙂 )

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2. nightskyastar says

   March 2, 2017 at 1:56 pm

   Dear John, could I have a question, please?
   in example 2
   Why A is un-motivated?

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   • John Moffat says

     March 2, 2017 at 4:37 pm

     A will be motivated to produce and sell to B (because the product is profitable for A).

     However, they will not be motivated to cut costs because that will mean that the 20% profit will end up being lower – that is what makes cost plus transfer pricing rather silly 🙂

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