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):

Question options:

a)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

b)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

c)If shipping goods from country B to country A, charge as high a transfer price as possible

d)If shipping goods from country A to country B, charge as low a transfer price as possible