Of the Signals That May Cause a Taxing Authority to Audit

question 21

Multiple Choice

Of the signals that may cause a taxing authority to audit a company's transfer price,which one is the most important?

• A)the nature of the business of the multinational corporation
• B)unexpectedly low profit
• C)profits higher than expected for a specific industry
• D)parent company located in an emerging economy

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Definitions:

Distress

Extreme anxiety, sorrow, or pain.

Transgender

A phrase defining an individual whose gender identity does not align with the sex designated to them at birth.

Sex-Reassignment Surgery

Surgical procedures that change one's bodily appearance and function to better reflect a person’s identified gender.

Designated

Appointed or assigned to a specified position or task, often officially.