How Transfer Pricing Rules Shape Corporate Tax Bills

In this episode of The Tax Policy Podcast, Lucas and Luna dive into the world of transfer pricing — the rules that determine how multinational corporations allocate income across countries. Using a concrete example of a fictional gadget company called GlobalGadget, they explore how transfer pricing can shift profits to low-tax jurisdictions and why tax authorities push back. They discuss the arm's length principle, the role of the OECD's BEPS project, and recent enforcement actions against companies like Apple and Amazon. The episode also touches on the proposed global minimum tax rate of 15 percent and what it means for corporate tax planning. By the end, listeners will understand why a simple intercompany transaction for a widget can spark a billion-dollar tax dispute. #TransferPricing #CorporateTax #OECD #BEPS #GlobalMinimumTax #ArmLengthPrinciple #ProfitShifting #TaxAvoidance #MultinationalCorporations #TaxEnforcement #Apple #Amazon #IRS #Economics #TaxPolicy #FexingoBusiness #BusinessPodcast #TaxReform Keep every episode free: buymeacoffee.com/fexingo