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Transfer Pricing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Transfer Pricing

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • December 4, 2021 at 12:45 pm #642486
    John1998m
    Participant
    • Topics: 73
    • Replies: 40
    • ☆☆

    You said in the lecture that divisions of a company would be in the same country which means that one division would be in one city and the other would be in another city but they will always be in one geographical area (i.e. within the same country).

    Since both the divisions are within the same country so no tax calculation is involved.

    Is that correct?

    December 5, 2021 at 7:36 am #642543
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54802
    • ☆☆☆☆☆

    Divisions do not pay tax. It is the company as a whole that pays tax – not each division of the company separately.

    December 5, 2021 at 8:04 am #642553
    John1998m
    Participant
    • Topics: 73
    • Replies: 40
    • ☆☆

    Yeah, that what I meant. Please say what I say about divisions being in one geographical area is all correct?

    December 5, 2021 at 9:00 am #642572
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54802
    • ☆☆☆☆☆

    Yes it is correct (which is effectively what I wrote in my reply!!).

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Transfer Pricing’ is closed to new replies.

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