USGovernment's Attitude Towards Transfer Pricing on Subsidiary Transactions in Foreign

question 79

Multiple Choice

U.S.government's attitude towards transfer pricing on subsidiary transactions in foreign locations is

• A)uninterested,because these transactions are outside the U.S.and thus,beyond U.S.jurisdiction.
• B)interested,because transfer pricing has tax implications for the host governments.Hence the IRS guidelines.
• C)neither interested nor uninterested,because,although there are tax implications for the host country,the U.S.tax authorities feel comfortable exercising their authority globally.
• D)uninterested,because foreign taxes are of no interest to them.