Substantial Valuation Understatement

Substantial Valuation Understatement means:
an understatement whereby the price for any property or services in a transfer pricing transaction is 50% or less of the correct price determined under Section 482. A 20% penalty applies to the underpayment of tax.

See also other Tax Terms and Definitions in U.S.A.

substantial transfer pricing valuation misstatement penalty.

See Transfer Pricing in the United States Encyclopedia of Law and Transfer Pricing in the International Encyclopedia of Law.