In a bid to reduce disputes related to transfer pricing Safe Harbour Rules have recently been notifi...........

Security Issues Maritime Security

In a bid to reduce disputes related to transfer pricing Safe Harbour Rules have recently been notified. Which amongst the following is/are incorrect about safe harbour rules?

1. These are the circumstances under which the tax department shall accept the transfer price

2. This will help resolve the tax and transfer pricing related disputes.

Select the correct answer using the codes given below

1 Only

2 Only

Both 1 and 2

Neither 1 nor 2

छोटे Courses बड़े Results

Master Maritime Security

Prepare through Micro-courses

Try Now

Explanation:

Second statement is incorrect i.e. Safe Harbour Rules will help resolve the tax and transfer pricing related disputes.

A safe harbor is a provision in a law or regulation that affords protection from liability or penalty under specific situations, or if certain conditions are met. Sometimes a safe harbor reduces liability if "good faith" is demonstrated.

Safe harbor provisions came into the news in 2015 in relation to data transfer between the European Union (EU) and the U.S. for law enforcement purposes. This was a case in which a safe harbor provision was actually taken away, not invoked.