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Transfer Risk Pricing

Transfer Risk Pricing

Definition

Transfer Risk Pricing — in reference to multinational insurance programs, this is the internationally recognized process for proper recognition of local taxable revenue and deductions involving intercompany transactions. Organizations may need to seek advice from both internal and external tax and audit experts in these processes. Establishing an arm's length, reasonable price, and documentation of the process is the key to the organization's ability to defend transactions that could be subject to outside auditing by governmental agencies.

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