Compliance Costs of Transfer Pricing for SMEs

  • Veronika Solilova
  • Danuse Nerudova
Part of the Contributions to Management Science book series (MANAGEMENT SC.)


This segment of the book contains an analysis of compliance costs of taxation with respect to SMEs and transfer pricing issues as well as critiques of current approaches. The last part of the chapter includes a case study on the determination of compliance costs of transfer pricing with respect to SMEs in the Czech Republic, the Slovak Republic and Poland, which represent countries from the Visegrad Group, and the European Union, as based on the results of our questionnaire. To determine the compliance costs of transfer pricing, cost and time approaches were used.



The chapter is the result of the GA ČR no. 15-24867S “Small and medium size enterprises in global competition: Development of specific transfer pricing methodology reflecting their specificities”.


  1. Amadeus Database (2015) Bureau Van DijkGoogle Scholar
  2. Bartelsman E, Beetsma, R (2000) Why pay more? Corporate tax avoidance through transfer pricing in OECD countries, Tinbergen Institute discussion paper no. 00-54/2. Accessed 02 May 2017
  3. Buus T (2009) Vhodný kalkulační vzorec s ohledem na rozhodování o ceně (transferové ceně) a maximalizaci hodnoty podniku. Český finanční a účetní časopis 4(2):33–45Google Scholar
  4. Carroll MB (1933) Taxation of foreign and national enterprises: vol. IV, Methods of allocating taxable income. Accessed 04 May 2017
  5. Chittenden F, Michaelas N, Poutziouris P (2000) Small business taxation: an agenda for growth. EDC: Manchester Business SchoolGoogle Scholar
  6. Cordova-Novion C, De Young C (2001) The OECD/public management service multi-country business survey – benchmarking regulatory and administrative business environments in small and medium sized enterprises. In: Evans C, Pope J, Hasseldine J (eds) Tax compliance costs: a Festschrift for Cedric Sandford. Prospect, SydneyGoogle Scholar
  7. Cressy R (2000) Tax, assistance, compliance and the performance of the smaller business. Research report to the Federation of Small BusinessGoogle Scholar
  8. European Commission (2002) Recommendation 2003/361/EC of 6 May 2003Google Scholar
  9. European Commission (2015) Annual reports on European SMEs 2014/2015. SMEs start hiring againGoogle Scholar
  10. Eurostat (2017) Main national accounts tax aggregates [gov_10a_taxag] – taxes on the income or profits of corporations including holding gainsGoogle Scholar
  11. Evans C (2003) Taxing personal capital gains: operating cost implications. Australian Tax Research Foundation, SydneyGoogle Scholar
  12. Green S (1994) Compliance costs and direct taxation. The Institute of Chartered Accountants in England and Wales, LondonGoogle Scholar
  13. Hines JR Jr, Rice EM (1994) Fiscal paradise: foreign tax havens and American business. Q J Econ 109(1):149–182CrossRefGoogle Scholar
  14. Huizinga HL, Laeven L (2006) International profit shifting within multinationals: a multi-country perspective. European Economy. Economic Papers 260. Accessed 15 May 2017
  15. Keuschnigg C, Devereux M (2013) The arm’s length principle and distortions to multinational firm organization. J Int Econ 89(2):432–440CrossRefGoogle Scholar
  16. KPMG (1996) Tax simplification: a survey of UK listed companies. KPMG, LondonGoogle Scholar
  17. KPMG (2006) Administrative burdens – HMRC Measurement Project. KPMG LLP (March). Accessed 10 May 2017
  18. Lohse T, Riedel N (2013) Do transfer pricing laws limit international income shifting? Evidence from European multinationals. CESifo working paper, no. 4404. Accessed 04 May 2017
  19. Ministry of Finance of Poland. Corporate income tax collection 2015Google Scholar
  20. Ministry of Finance of the Czech Republic. Corporate income tax collection 2015Google Scholar
  21. Ministry of Finance of the Slovak Republic. Corporate income tax collection 2015Google Scholar
  22. Nerudová D, Bohušová H, Svoboda P, Široký J (2009) Harmonizace účetních standardů pro malé a střední podniky. Praha, Wolters KluwerGoogle Scholar
  23. Obermair C, Weninger P (2008) Tax compliance costs for companies in an enlarged European community. General report. In: Lang M et al (eds) Tax compliance costs for companies in an enlarged European community. Linde, WienGoogle Scholar
  24. OECD (1995) Transfer pricing guidelines for multinational enterprises and tax administrations, Chap I. OECD Publication Service, ParisGoogle Scholar
  25. OECD (2001) Businesses’ views on red tape. Administrative and regulatory burdens on small and medium-sized enterprises. Organisation for Economic Co-operation and Development, Paris. doi:
  26. OECD (2010) Transfer pricing guidelines for multinational enterprises and tax administrations. Accessed 12 May 2017
  27. OECD (2017) Transfer pricing guidelines for multinational enterprises and tax administrations. Accessed 11 July 2017
  28. Pavel J, Vítek L (2015) Vyvolané náklady daňového systému v ČR. Politická ekonomie 63(3):317–330CrossRefGoogle Scholar
  29. Pris P, Gornnet S, Meghames R (2014) Understanding risk in the enterprise: the key to transfer pricing for today’s business models. Int Trans Pricing J 21(6):395–401Google Scholar
  30. Pudil P, Vybíhal V, Vítek L, Pavel J et al (2004) Zdanění a efektivnost. Eurolex Bohemia, PrahaGoogle Scholar
  31. Rojíček M (2012) Vliv globalizace na fungování mezinárodního obchodu. Politická Ekonomie 60(2):187–207CrossRefGoogle Scholar
  32. Sandford SC (1995) Tax compliance costs – measurement and policy. Fiscal Publications in association with The Institute for Fiscal Studies, BathGoogle Scholar
  33. Shaw J, Slemrod J, Whiting J (2008) Administration and compliance. Chapter prepared for the report of a Commission on reforming the tax system for the 21st century (Mirrlees review). Institute for Fiscal Studies. Accessed 10 July 2017
  34. Silberztein C (2013) OECD: transfer pricing safe harbours. Int Trans Pricing J 20(2):432–440Google Scholar
  35. Slemrod J (2006) The (compliance) cost of taxing business. Accessed 10 July 2017
  36. Solilová V, Nerudová D (2012) The effects of changes in transfer pricing policy of the business models in 21st century. In: New role of public finance 2012. Wolters Kluwer ČR, Praha, pp 247–257Google Scholar
  37. Solilová V, Nerudová D (2013) Transfer pricing: general model for tax planning. Ekonomický Časopis 61(6):597–617Google Scholar
  38. Solilová V, Nerudová D (2016) Návrh bezpečných přístavů v oblasti převodních cen pro malé a střední podniky. Politická ekonomie 64(5):558–571CrossRefGoogle Scholar
  39. Solilová V, Steindl M (2013) Tax treaty policy on article 9 of the OECD model scrutinized. Bull Int Tax 67(3):128–136Google Scholar
  40. Swenson LD (2001) Tax reforms and evidence of transfer pricing. Natl Tax J 54(1):7–25CrossRefGoogle Scholar
  41. Taylor G, Richardson G, Lanis R (2015) Multinationality, tax havens, intangible assets, and transfer pricing aggressiveness: an empirical analysis. J Int Account Res 14(1):25–57CrossRefGoogle Scholar
  42. Vítek L, Pavel J (2008) Analýza nákladů soukromého sektoru vyvolaných daňovým systémem (výzkumná studie). Vysoká škola ekonomická v Praze a Ministerstvo financí ČR, PrahaGoogle Scholar
  43. Wells B, Lowell C (2014) Tax base erosion: reformation of section 482’s arm’s length standard. Fla Tax Rev 15(10):737–797Google Scholar
  44. World Bank and PwC (2017) Paying taxes 2017. World Bank, Washington, DC. Accessed 10 May 2017

Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Veronika Solilova
    • 1
  • Danuse Nerudova
    • 1
  1. 1.Mendel UniversityBrnoCzech Republic

Personalised recommendations