Transfer Pricing Rules of Trading Partners

Abstract

With the growth of the global economy, many national governments in the face of the magnitude of the issue of transfer pricing, have enacted legislation for the operation of a regulatory service under their tax authorities. At varying levels of comprehensiveness, the legislation specifies the detailed means by which the authorities intend to prevent abuses of transfer pricing and to deal with them when they occur. Consequently, the content of national legislation lays down the standards expected of good practice, the treatment to be adopted for the correction of failure to follow them, and the penalties that may be applied in the event of convicted malpractice.