Topic Multinationals and transfer pricing
Some multinational companies have operations overseas who may arrange to transfer revenues between departments/operations (i.e. transfer pricing). While the Australian Tax Office (ATO) consider this process as an opportunistic behavior, critically discuss (from management accounting perspective) some of the major benefits in transferring revenue between departments/operations by multinational companies. How do you think the Australian government can contribute to reduce such opportunistic behavior as well as to maintain the genuine management strategy.
Target audience: Representatives from Australian Taxation Office and government officials from The Department of the Treasury (Australia)
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