During the current income year, Ian was advised by his friend Shawn that the couple could set up a shell company in the Cayman Islands using a local registered address with the help of a specialised agent in the country. The new company will be able to lend money to Goodwill Net Pty Ltd at the market interest rate to pay off the loan to Eva who will then deposit the money to the Cayman Islands company's account. Tina, Eva's close friend, however pointed out that Shawn's advice may involve the game of transfer pricing which is a "central feature of contemporary tax avoidance strategies"

a.outline the tax and accounting implications and relevant regulatory issues in this proposal

b.Explain the concept of transfer pricing, particularly how it relates to the cast study, and critically evaluate its socio-political, ethical and economic repercussions