If a manufacturing affiliate faces a 55 income tax rate, and its distribution affiliate faces a 40 income tax rate and a 15 import tariff, should transfer prices be high or low ...

Let be the tariff rate in the distribution country which is 15 in our example Let m be the income ta ...

If a manufacturing affiliate faces a 55% income tax rate, and its distribution affiliate faces a 40%

Question:

If a manufacturing affiliate faces a 55% income tax rate, and its affiliate faces a 40% income tax rate and a 15% import tariff, should transfer prices be high or low?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...