The Research On Tax Avoidance Of Transfer Pricing

According to the theory of psychology and the science of behavior, behavior is dominated by the motivation which consists of drive and incentive. Therefore, the transfer pricing of the taxpayer is also dominated by the motivation. This paper will use the psychology to analyze the motivation, drive and incentive of transfer pricing, and use game theory to analyze the transfer pricing decision-making.First, the paper will analyze the taxpayer's transfer pricing. According to the different aim of transfer pricing, the motivation of transfer pricing can be divided into tax motivation and non-tax motivation, and this paper will analyze the drives and incentives of these motivations. Second, In allusion to the different institution of transfer pricing, the paper will set up two models to study the decision-making process of the transfer pricing. At last, in order to perfect the analysis of the models and give the government practical advice about how to administrate transfer pricing, the paper will investigate the taxpayer's transfer pricing through the questionnaire.The most significant conclusions in this paper are summarized as follows: (1) The paper deeply analyzes the process of the taxpayer's transfer pricing action upon psychology; (2) In allusion to the different institution of transfer pricing, the paper sets up two models to explain how the transfer pricing actions are influenced; (3) The advice about how to administrate the transfer pricing actions of the taxpayers is put forward through the questionnaire.