US hardware manufacturer imported finished goods into China at a transfer pricing that left China with a small profit. When the Chinese customs authority challenged the per unit pricing reported claiming it should be higher, CRA’s transfer pricing group provided both external per unit pricing support as well as the economic reality of increasing pricing leaving the China entity at a loss and its impact on corporate taxation overall.
Transfer Pricing: The year in review
The ripple effect of the pandemic continued to dominate economic conditions in 2021, which informed how we have approached transfer pricing issues on behalf of...