What is Transfer Pricing?

Dr. Aikaterini Perrou, MS Project Leader, during our kick-off meeting held in April 17th 2018, explained in a very simple way “What is Transfer Pricing?”
Dr. Perrou said, among others, that “Transfer pricing is not, in itself, illegal or necessarily abusive. What is illegal or abusive is transfer mispricing, also known as transfer pricing manipulation or abusive transfer pricing”.
She pointed out the need for Country by Country Reporting (CbCR) since 60% -70% of international trade happens within, rather than between, multinationals and she explained why Transfer Pricing rules are essential to provide a climate of certainty and an environment for increased cross-border trade while at the same time ensuring that the country is not losing out on critical tax revenue. Presentation of speaker can be found (here).