More documents from Bhat, Ganapati

Export to your Reference Manger

Please Copy & Paste



Bookmark and Share

Transfer pricing, tax havens and global governance

[working paper]

Bhat, Ganapati

fulltextDownloadDownload full text

(1294 KByte)

Citation Suggestion

Please use the following Persistent Identifier (PID) to cite this document:

Further Details
Corporate Editor Deutsches Institut für Entwicklungspolitik gGmbH
Abstract "Tax-motivated transfer pricing has attracted world attention owing to the existence of low-tax jurisdictions and the volume of the activities of multinational corporations (MNCs). MNCs have many instruments for shifting profits through transfer pricing, and tax havens provide ample opportunity for this. Tax havens pose the threat of capital flight and income shifting from high-tax countries. At present, there are two ways of tackling this problem: by applying the arm’s length principle to determine the tax payable by MNCs in a particular jurisdiction or by using a formula to allocate tax payable by MNCs between countries. Based on various studies conducted so far, this paper summarizes the advantages and disadvantages of these methods in solving the problem of profit-shifting by MNCs. The predicament is truly global in nature, and no single country or group of countries can hope to resolve it. It is high time a global institution was set up to calculate MNCs’ worldwide income and to provide tax authorities with timely information." [author's abstract]
Keywords multinational corporations; global governance; distribution of profits; tax evasion; profit; taxation; income statement
Classification Financial Planning, Accountancy
Method descriptive study
Free Keywords Verrechnungspreis; Gewinnverlagerung; Steueroase; Steuerbemessung
Document language English
Publication Year 2009
City Bonn
Page/Pages 46 p.
Series DIE Discussion Paper, 7/2009
ISBN 978-3-88985-455-1
Licence Deposit Licence - No Redistribution, No Modifications
data provider This metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne