Which of the following statements correctly the approach of customs authorities...

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Which of the following statements correctly the approach of customs authorities and direct taxation authorities, when it comes to setting a transfer price?

A. Both authorities will want to set the lowest possible transfer price

B. The customs authorities will want to set a high transfer price while the direct taxation authorities will want to set a low price

C. Both authorities will want to set the highest possible transfer price

D. The customs authorities will want to set a low transfer price while the direct taxation authorities will want to set a high price

Answer: Option B


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