Question

The OECD is concerned about transfer pricing practices because ________. a. transfer pricing can help maximize a company's worldwide tax liability b. companies use transfer prices to manipulate prices and, therefore, taxes c. transfer prices tend to be higher in industrial than developing countries d. governments use transfer prices to manipulate companies' investment strategies

Answer 1

b. companies use transfer prices to manipulate prices and, therefore, taxes

Step-by-step explanation:

Organisation for Economic Co-operation and Development was established on the 30th of September, 1961 and it comprises of 38 member countries. It is an intergovernmental organization that is saddled with the responsibility of stimulating economic growth and world trade among member countries.

The OECD is concerned about transfer pricing practices because companies use transfer prices to manipulate prices and, therefore, taxes