Download pdf
Tax Avoidance and Regulation of Transfer Pricing: From the Perspective of International Law
- 1 Shandong University of Political Science and Law
* Author to whom correspondence should be addressed.
Abstract
With the social economy developing continuously and the deepening of economic globalization, the scale of multinational corporations is expanding increasingly. However, due to the gap in tax rates between different countries, multinational corporations have room for tax planning. As a common means of tax avoidance in multinational enterprises, transfer pricing is officially realized by relying on the difference of tax rates in different countries. But transfer pricing in bring huge profits to multinational companies at the same time, the multinational home and host country revenue caused great damage, so the transfer pricing has become the focus of the tax authority regulation, this paper mainly through the case analysis of Coca-Cola company, this paper expounds the multinational companies through the transfer pricing tax avoidance and transfer pricing multidimensional adjustment of thinking. Therefore, for multinational corporations, under the constraints of relevant laws and norms, reasonable planning and control of the risk of transfer pricing is the key to enterprise tax avoidance compliance.
Keywords
Transnational enterprises, Transfer pricing, Tax avoidance, Independent trade principle
[1]. Pan Rongrong. (2023) Transfer Pricing and Tax Avoidance for Multinational Corporations. Cooperative Economy and Technology, 7,168-170.
[2]. OECD. (2022) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administration.
[3]. Li Shuyi. (2023) Research on Tax-related Recognition Rules of Labor Transfer Related Transactions. East China University of Political Science and Law.
[4]. Yu Pinxian. (2023) New rules for the transfer pricing of intangible assets in the post-BEPS era. Journal of Shanghai University of International Business and Economics, 30(03),60-75.
[5]. Zhuang Mengting. (2021) Research on the Transfer Pricing of Marketing Intangible Assets. South China University of Technology.
[6]. Guo Xianlin, Huang Chen. (2018) On the Anti-tax Avoidance Legal System of Transfer Pricing. Academic Exchange Information Centre (China). Proceedings of International Conference on Economics, Business, Management and Corporate Social Responsibility.
[7]. Jose Calderon. (2017) The OECD Transfer Pricing Guidelines as A Source of Tax Law: Is Globalization Reaching the Tax Law, Intertax.
[8]. OECD. (2017) Model Tax Convention on Income and on Capital, Article 25.
[9]. Reuven Avi-Yonah. (2019) Tax Prof Blog Altera Redux. Retrieved from https://taxprof.typepad.com/taxprof_blog/2019/06/avi-yonah-alteraredux.html#_ftn4.
[10]. Patric Zhao. (2021) Function and risk entanglement in the Coca-Cola case. Retrieved from http://www.cntransferpricing.com/index.php/guojifanbishui/950.html.
[11]. Patric Zhao. (2021) The third dimension of the principle of independent transaction and the value chain analysis in the Coca-Cola case. Retrieved from http://www.cntransferpricing.com/index.php/guojifanbishui/951.html.
Cite this article
Wang,Y. (2024). Tax Avoidance and Regulation of Transfer Pricing: From the Perspective of International Law. Lecture Notes in Education Psychology and Public Media,65,19-26.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 3rd International Conference on International Law and Legal Policy
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).