COST ACCOUNTING
TRANSFER PRICING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following services is not an example of low-value adding intra-group services as specified in paragraph 7.49 of the OECD Transfer Pricing Guidelines?
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Receivables and debt management services
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Services related to Human Resources recruitment, such as assistance in evaluating applicants and selecting employees
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Marketing services
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Accounting and auditing services
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Explanation:
Detailed explanation-1: -The Guidelines also provide examples of typical intra-group services meeting the low value-adding services criteria (e.g. accounting and auditing, HR activities, regulatory data processing, IT services, communications and PR, legal services, tax support and general administrative and clerical support).
Detailed explanation-2: -Low value-adding services are services of a supportive nature; not part of the core business of the group; not involving the use of, or leading to the creation of, unique and valuable intangibles; and not involving the assumption or creation of significant risk for the service provider.
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