I'm aware that US companies use transfer pricing to increase the profits of their Irish subsidiaries to minimise their overall tax liabilities. From what I know of this process they must prove that value has been added in Ireland otherwise it is not legitimate tax avoidance. Am I correct in this?
How does this apply to goods/commodities that are imported to Ireland and the value simply increases due to rising market prices without any added-value processing? If they are sold at the higher current market value will the US authorities apply tax on that figure?
How does this apply to goods/commodities that are imported to Ireland and the value simply increases due to rising market prices without any added-value processing? If they are sold at the higher current market value will the US authorities apply tax on that figure?