The US government can initially amend the section 482 to disallow inter company transfer pricing deals which prove detrimental to the taxpayers. The tax authorities can alternatively set a threshold limit for inter company sale of goods or services and have a law in place where any transaction exceeding the limit will invite tax scrutiny. The law can be amended to cover both domestic and cross border transactions to keep a check on tax evasion. The government can propose a law to levy taxes on excees profit if they are used for repatriation purposes.
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