Business Case Studies, Microeconomics Case Study, Microeconomics Case Study, Transfer pricing

print page
Tell A Friend

Case Categories

Microeconomics Case Study

Case Title:

Transfer Pricing

Publication Year : 2004

Authors: Ankeet Bajaj, G Srikanth

Industry: General Business


Case Code: MBM0005

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study

Rapid globalisation has seen increasing levels of intra-firm trade between affiliates situated in different countries. Companies frequently shift profits to low tax jurisdictions in order to maximize returns. This is most commonly done through 'transfer pricing' of tangibles and intangibles between group companies. However, despite the tightening of transfer pricing litigation around the world, laws are difficult to implement because they involve significant levels of interpretation as to where value is actually created.

Pedagogical Objectives:

    To discuss the issues relating to tax avoidance/evasion by shifting profits to low tax countries through transfer pricing.

Keywords : Microeconomics Case Study, Transfer pricing and arm's length pricing, Comparable uncontrolled price, Avoidance of double taxation, Standard cost system, GlaxoSmithKline and Compaq Computer Corporation, Comparable profits method, Seagate Technology Inc, Cost plus method, Royalty payments, Tax avoidance, Activity based costing, Internal Revenue Service, Weighted average sale price, Standard material, manufacturing cost, Profit split method

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • Dr. Michael HammerDr. Michael Hammer

    Visiting Professor at MIT and a Fellow at Oxford University.
    Speaks on Change Management
  • Jeanne M BrettJeanne M Brett

    DeWitt W Buchanan, Jr., Professor of Dispute Resolution and Organizations at Kellogg School of Management, Northwestern University.
    Speaks on Multicultural Teams
  • Prof. Kai-Alexander SchlevogtProf. Kai-Alexander Schlevogt

    Professor of international strategy and leadership at the National University of Singapore (NUS) Business School. He serves as Program Director of the Nestle Global Leadership Program, delivered in association with London Business School.
    Speaks on Emerging Markets
  • View All Executive Interviews»

Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA, E-mail:

2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap