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Transfer Pricing

JJohn4y ago
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?
John MoffatJohn MoffatTutor4y ago#1
Divisions do not pay tax. It is the company as a whole that pays tax - not each division of the company separately.
JJohn4y ago#2
Yeah, that what I meant. Please say what I say about divisions being in one geographical area is all correct?
John MoffatJohn MoffatTutor4y ago#3
Yes it is correct (which is effectively what I wrote in my reply!!).
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