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Transfer Pricing: A World of Pain

China, India, and other once tax-friendly domains look to squeeze U.S.-based multinationals on sales between subsidiaries.

Alix Stuart, CFO Magazine
September 1, 2009

Transfer Pricing

Quote from the article, "Even if you have the documentation and it is perfect, it could be challenged," says Harding. "A lot of governments go in there planning to get something, unquote." I strongly believe that such approach of trying to atleast get the underwear of a thief might back fire especially under the circumstances when even OECD finding difficult to get full cooperation and support from many countries though having double taxation agreements, and are not happy to exchange information with other country on their Taxpayers . Such undue harrassment might make the companies in question to seriously thing of widing up their businesses,and look for openings in other countries who are desparately looking for foreing investments especially under the present economic crisis. US must follow the principle of "not a single dollar less nor more" giving confidence to MNCs in especial to continue their businesses.This reminds the case of "golden geese".

Posted by Shaikh Ahmed | September 15, 2009 04:38 am

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