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Company and Government Interests

  • Jian Li
  • Alan Paisey

Abstract

From the point of view of multinational enterprises, International Transfer Pricing is an instrument to manage internal markets efficiently. It serves their goals to maximise global profits and minimise their business risks. Yet, from the viewpoint of a host government, International Transfer Pricing itself is a potential problem in that it can create losses of taxation revenue, and therefore negatively affect the national economy. For developing countries, owing to their lack of institutional frameworks and administrative expertise to analyse complex transfer pricing situations, their economies are more vulnerable to transfer pricing manipulation than those of developed countries.

Keywords

Host Country Vertical Integration Parent Company Transfer Price Multinational Enterprise 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Jian Li and Alan Paisey 2005

Authors and Affiliations

  • Jian Li
  • Alan Paisey

There are no affiliations available

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