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SSRN id1123706
International Transfer Pricing Issues and Strategies for the Global Firm

Molly Dean
Frederick J. Feucht
L. Murphy Smith*

*Corresponding author

Working Paper

International Transfer Pricing Issues and Strategies for the Global Firm
Abstract
Internal auditors play key roles in multinational corporations, including assessing effectiveness of business operations. Internal auditors can help evaluate effectiveness of corporate policies regarding international transfer pricing. International transfer pricing is a major issue for multinational corporations, as transfer pricing is a key element in corporate taxation strategies. This article explains basic issues of transfer pricing, illustrates how multinational corporations can benefit from effective transfer pricing policies and, and describes the importance of proper documentation. The arm’s length approach to transfer pricing is presented. Transfer pricing, if done correctly, can improve the overall success and value of an international company.
Key words: International business, transfer pricing, corporate taxation, arm’s length transfer International Transfer Pricing Issues and Strategies for the Global Firm
Internal auditors play key roles in multinational corporations, including providing valuable input regarding effectiveness of business operations. Internal auditors can help multinational corporations by assessing the effectiveness of corporate policies regarding international transfer pricing. International transfer pricing is a major issue for multinational corporations, as transfer pricing is a key element in corporate taxation strategies. This article explains basic issues of transfer pricing, illustrates how multinational corporations can utilize transfer-pricing policies, and describes the importance of documenting these transfers. The arm’s length approach to transfer pricing is presented, including several methods available to ensure that each transfer is done appropriately. Background
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