Skip to main content
Taxes

Round trip transaction

As a finance expert, it's important to understand the concept of transfer pricing abuse. This occurs when a parent company creates intangible property and then licenses it to a related party manufacturer in a low-tax jurisdiction. The manufactured goods are then sold back to the parent company for distribution to consumers. This practice can lead to lower tax payments and potential financial gains for the parent company. It's crucial to be aware of such tactics in order to make informed financial decisions.

Related terms

Vertical equity

Understand the meaning and definition of Vertical equity in the context of stock market, trading, and investments.

MORE
Customs duties

Understand the meaning and definition of Customs duties in the context of stock market, trading, and investments.

MORE
Dependent personal services

Understand the meaning and definition of Dependent personal services in the context of stock market, trading, and investments.

MORE
Juridical double taxation

Understand the meaning and definition of Juridical double taxation in the context of stock market, trading, and investments.

MORE
Penalties

Understand the meaning and definition of Penalties in the context of stock market, trading, and investments.

MORE
Tax exile

Understand the meaning and definition of Tax exile in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91