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A guide to international transfer pricing
Author(s) -
Anandarajan Asokan,
McGhee Mitch,
Curatola Anthony P.
Publication year - 2007
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20338
Subject(s) - transfer pricing , multinational corporation , sanctions , business , revenue , legislation , face (sociological concept) , european union , economics , international trade , industrial organization , finance , law , political science , social science , sociology
More than 70 percent of global trading transactions are between companies of multinational corporations. But local tax authorities fear they may lose tax revenues, as a result of global trading and the artificial manipulation of transfer prices. So the United States, Japan, and the European Union have introduced stringent transfer pricing legislation. Companies that violate them face costly sanctions! How can companies cope with these tough laws? The authors of this article give valuable guidance. They explain the different types of transfer pricing strategies, provide guidelines, and expose possible pitfalls for companies dealing in this complex area. © 2007 Wiley Periodicals, Inc.