Customs valuation and transfer pricing – understanding similarities and differences (I)
2023-12-17
Editors' note: In November, the European Commission published the news 'New transfer pricing rules to make life easier for businesses in the EU'. The new rules are necessary to address several
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challenges, including the competing objectives of customs and tax authorities, which lead to double compliance requirements. The problem is global. According to the Corporate Tax Association of Australia (CTAA), 'it is unacceptable for a business to be required to satisfy two arms of the same government, one demanding a higher price and the other a lower price in respect of the same transaction'. In this first part of the article, the author provides an overview of the rules and methods of customs valuation and transfer pricing.
Rizwan Mahmood