An explainer on Transfer Pricing
Finshots Daily
00:00
Introduction
Imagine two companies X and Y that are related to each other. Whenever Y ships need repair, it will go to X and X doesn't charge an exorbitant fee. Such a business deal means that X is artificially suppressing profits in India. And if Britain has a lower tax rate than India, Y pays less tax overall too. It's a big win for Y.
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Transcript
