Transfer Pricing
We also undertake transfer pricing valuations.
Transfer pricing is the setting of the price for goods and services sold between controlled (or related) legal entities within an enterprise. For example, if a subsidiary company sells goods to a parent company, the cost of those goods paid by the parent to the subsidiary is the transfer price.
Transfer pricing is one of the most contentious issues for any corporates with subsidiaries or associated companies. Very often unrealistic transfer prices become a concern for government taxing authorities when transfer pricing is used to lower profits in a division of an enterprise located.