ECONOMICS

COST ACCOUNTING

TRANSFER PRICING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

What is not a mandatory requirement for taxpayers to report Master Files and Local Files?

A	Gross Circulation >50M
B	Tangible goods transactions >10M
C	Intangible western transactions >5M
D	Transactions with “Tax Haven Country”

Explanation:

Detailed explanation-1: -Master File (’MF’) is required to be filed every constituent entity of international group to tax authorities of a country in which such entity is resident. MF in substance contain date relating each entity’s economic activity in multinational group.

Detailed explanation-2: -The master file is a statement relating to your global operations and activities, and the pricing policies relevant to transfer pricing of you and the other members of your multinational enterprise (MNE) group.

Detailed explanation-3: -A Local File is Transfer Pricing documentation already prepared in the local jurisdiction of a member of a Multinational Entity’s group. While the Master File provides an overview, the Local File is more detailed.

There is 1 question to complete.