# Profit shifting (transfer of profits)

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- Post ID: 592747
- Modified: 2023-07-25T21:11:49+00:00
- Language: en

## Definition

Unless otherwise defined, the allocation of profits earned by one company to another domestic or foreign company. In most cases, this involves internal financing. Funds are transferred from a parent company to a subsidiary or vice versa. - See group, zero distribution, cross-subsidization, self-financing. - Cf. Deutsche Bundesbank Monthly Report, January 2012, p. 19 (foreign subsidiaries of German companies are provided with capital). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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