What is transfer Pricing?
It is the pricing of  goods and services for related parties or connected persons.
Examples of related parties transactions includes the following: 
1.Transactions between a company and its Subsidiary or related company.
2.Transactions between a director and his/her company.
3.Transactions between  a person with substantial amount of shareholding and his/her company.
4.Transactions between a company and a person related to the principal  officer of that company.
   For example C.E.O’s wife and the company.
5. Transactions between companies where  the director of one of the companies has a substantial interest in    another.
6 . Transactions between blood relations and relatives.

7. Transactions between employer and the employee.

It is necessary that  businesses establish a transfer Pricing policy and good transfer pricing  documentation that reflects market value. 

 Disclaimer: Obi azubuike is not by this publication acting as a professional advisers and therefore not liable to any  damage whatsoever for acting or refraining to act based on  this publication. Consult your professional for advice.  

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