Question 20 (6 points) E Listen Review numerical example-1 on Transfer pricing (TP) with difference in taxes between countries but NO tariffs (or import duties) in country B, then choose the correct answer (assuming governments and tax authorities do not intervene): If shipping goods from country A to country B, charge as low a transfer price as possible If tax rates in country A are more than tax rates in country B, and you ship goods from country B to country A, then charge a low transfer price If shipping goods from country B to country A, charge as high a transfer price as possible If tax rates in country A are more than tax rates in country B, then charge a low transfer price in shipping goods from country A to country B Question 21 (6 points) E Listen Review numerical example-1 and example-2 in Transfer pricing, then select the best strategy If governments and tax authorities are to be considered, always err on the side of signing advance pricing arrangements (APAs) If governments and tax authorities are to be considered, always err on the side of whatever is best strategy for your corporation from your point of view O If governments and tax authorities are to be considered, always err on the side of high transfer prices to be free of any litigation If governments and tax authorities are to be considered, always err on the side of low transfer prices to be free of any litigation Question 20 (6 points) E Listen Review numerical example-1 on Transfer pricing (TP) with difference in taxes between countries but NO tariffs (or import duties) in country B, then choose the correct answer (assuming governments and tax authorities do not intervene): If shipping goods from country A to country B, charge as low a transfer price as possible If tax rates in country A are more than tax rates in country B, and you ship goods from country B to country A, then charge a low transfer price If shipping goods from country B to country A, charge as high a transfer price as possible If tax rates in country A are more than tax rates in country B, then charge a low transfer price in shipping goods from country A to country B Question 21 (6 points) E Listen Review numerical example-1 and example-2 in Transfer pricing, then select the best strategy If governments and tax authorities are to be considered, always err on the side of signing advance pricing arrangements (APAs) If governments and tax authorities are to be considered, always err on the side of whatever is best strategy for your corporation from your point of view O If governments and tax authorities are to be considered, always err on the side of high transfer prices to be free of any litigation If governments and tax authorities are to be considered, always err on the side of low transfer prices to be free of any litigation
