ACC 568 Week 8 Assignment 4 Transfer Pricing
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ACC 568 Week 8 Assignment 4 Transfer Pricing
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Due Week 8 and worth 320 points Transfer pricing is probably one of the biggest tax issues facing taxing authorities . Transfer pricing involves allocating revenues and costs between countries in order to create the best possible tax situation for a multinational company . For this assignment , you will be required to respond to the following scenario : A multinational company has hired you as its tax professional to advise the company on how to use transfer pricing to avoid or mitigate taxes . This company manufactures and sells cars in the U . S . and two ( 2 ) foreign countries . Using the Internet or Strayer Library , research the rules and techniques for transfer pricing . Choose two foreign countries and research their respective tax rates . Write a six to eight ( 6-8 ) page paper in which you : 1 . Based on your research , create projections of revenues , costs , and tax rates for all three ( 3 ) countries , including the U . S . Provide support for your projections . 2 . Based on your projections , create at least two ( 2 ) scenarios in which you allocate revenues and costs to each country to determine the lowest possible overall tax for each country . Provide support for your rationale . 3 . Create at least three ( 3 ) scenarios and propose a scenario to the client that will result in a favorable tax position . Provide support for your rationale . 4 . Create at least three ( 3 ) scenarios and propose a scenario to your client that is less likely to result in an IRS audit . Provide support for your rationale .