Title: The Economic Analysis of Transfer Pricing ——Based on the Perspective of Tax Motivation
Abstract: Transfer pricing is an important tax issue for multinational corporations today. Although tax avoidance is not the only purpose of transfer pricing,it is one of the most important driving forces. By observing the main factors which affect multinational corporations' transfer pricing of tax avoidance decisions,this paper establishes tax cost and revenue functions to analyze the transfer pricing strategy and implementation conditions of companies and find out the optimal solution of transfer pricing which maximizes the expected utility of enterprises. Based on this,more researches are made by the tax authorities on the influence of the examination probability,adjustment probability,and the income tax rate of transfer pricing behaviors in multinational companies on the optimal solution of transfer pricing. More analysis is made on the influence of the factors on the transfer pricing of tax avoidance decisions.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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