Overview Transfer pricing is a term used to ‘describe all aspects of intercompany pricing arrangements between related business entities, and commonly applies to intercompany transfers of tangible and intangible property.’ (PWC) The different groups within an organization may include: 1. Separate legal entities for tax reporting purposes 2. Cost or profit centers within a company 3. Joint ventures with another company. Intercompany transactions are growing rapidly and with globalization becoming more complex. Global integration and new business practices …showed first 75 words of 301 total…

…showed last 75 words of 301 total…manner that enhances organization performance and efficiencies at different levels. We thus find that transfer pricing is a multifaceted exercise that provides a company with internal benefits and reduces external risks. Transfer pricing analysis draws upon knowledge and business experience from many disciplines such as business operations, economics, taxation, law, accounting and finance. Source: 1. Heimert, Michael. “Strategic transfer pricing: A primer for the boardroom”, Directorship. v. 23 issue 11, 1997, p. 12. 2. PWC Website – Transfer Pricing, www.pwcglobal.com