QUESTION TWO (05 Marks) The transfer pricing is the process for setting price of a transaction between two entities that a part of the same group of companies. The dilliculty in monitoring and taxing such transactions is that they do not take place on an open market. Whereas a commercial transaction between two independent companies "uncontrolled transaction" on competitive market should rellect the best or both companies, transactions between alliliated companies "controlled transactions are more likely to be made in the best interest of the global corporation. It can be in the interest of the global corporation to make higher profits in lower-laxed jurisdictions and lower profits in higher taxed ones, as a means of reducing its overall tax bill. Required: For each of the dodging practice, bridly explain how does the Income tax Act 2001 and Tax Administration (Transfer pricing) Regulations, 2018 address the four tax dodging practices by MNEP 6.c. Taking a trip to Mauritius. Thinning on top. The Swiss Role and Going Dutch). QUESTION TWO (05 Marks) The transfer pricing is the process for setting price of a transaction between two entities that a part of the same group of companies. The dilliculty in monitoring and taxing such transactions is that they do not take place on an open market. Whereas a commercial transaction between two independent companies "uncontrolled transaction" on competitive market should rellect the best or both companies, transactions between alliliated companies "controlled transactions are more likely to be made in the best interest of the global corporation. It can be in the interest of the global corporation to make higher profits in lower-laxed jurisdictions and lower profits in higher taxed ones, as a means of reducing its overall tax bill. Required: For each of the dodging practice, bridly explain how does the Income tax Act 2001 and Tax Administration (Transfer pricing) Regulations, 2018 address the four tax dodging practices by MNEP 6.c. Taking a trip to Mauritius. Thinning on top. The Swiss Role and Going Dutch)