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.
5. Assume that the IRS has challenged the allocations and is
preparing to audit the client. Prepare a position to defend the
client to IRS. Provide support for your position.