Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please Type Topic Into Search Bar

What is a "secondary adjustment"?

Transfer Pricing
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here

Tax Professional Answers

User Photo
Michael Kalson, PhD
Say a buyer paid $50 over the arm’s length price for a good. A primary adjustment will require the seller to pay the buyer back that $50 he overcharged him. But in the meantime, the seller was reaping the benefits of that $50 that really belong to the buyer. So a secondary adjustment would require the seller to transfer over the interest earned on that $50, or any other benefits that would have accrued to the buyer, and the buyer would owe the tax on those benefits to his country.
Leave a Comment 74 weeks ago

Meet Leading Tax Advisors

User Photo John Stancil



User Photo Peter J. Scalise

Federal Tax Credits & Incentives Practice Leader

New York, NY

User Photo John Dundon, II EA

Tax Director

Denver, CO

User Photo William Rogers, CFP, MBA, EA

CEO/Certified Financial Advisor

Rancho Santa Fe, CA

User Photo Monika Miles


San Jose, CA

User Photo Blake Christian

Tax Partner

Long Beach/ Park City, CA

User Photo John Richardson


Toronto, Canada


View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page



Learn from tax advisors, straight to your inbox

Update My Email Address
Contact Us Today