INTERVIEW QUESTIONS TAX DETAILS

Question: What is Compensating Adjustment in Taxation?

Answer: Compensating Adjustment in Taxation is an adjustment in which the taxpayer reports a transfer price for tax purposes that is, in the taxpayer's opinion, an arm's length price for a controlled transaction, even though this price differs from the amount actually charged between the associated enterprises. This adjustment would be made before the tax return is filed.

Compensating Adjustment in Taxation is an adjustment in which the taxpayer reports a transfer price for tax purposes that is, in the taxpayer's opinion, an arm's length price for a controlled transaction, even though this price differs from the amount actually charged between the associated enterprises. This adjustment would be made before the tax return is filed. Source: CoolInterview.com

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