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Multinational Corporation Transfer Pricing Legal System

Posted on:2013-03-17Degree:MasterType:Thesis
Country:ChinaCandidate:W ChenFull Text:PDF
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With the accelerated process of economic globalization, the influence of multinational corporations (and their affiliated enterprises) grow more widely in the world, especially after the1960s.Along with the expansion of multinational corporations, their internal trade are rapid increase. These phenomena brought multinational corporations tremendous benefits, but also attracted the attention of governments(home country and host country).Transfer pricing is necessary, for existing of internal transactions, there must be a pricing of internal transactions (transfer pricing), but the abuse of transfer pricing brought lots of problems to countries, especially the host country, the most considerable matter is the to reduction of tax revenue in host country, unfair competition and other issues.To safeguard the legitimate interests of the nation, we must regulate the abuse of multinational transfer pricing, the object of this paper is the legal regulation of multinational transfer pricing. Company born of pursuing fortune and reasonable taxes collected by the nation is not a pair of irreconcilable contradictions, based on the above, this paper stand in the host position, discuss the legitimacy of the legal regulation of multinational transfer pricing, effectiveness, to seek the harmonious and healthy development of legal regulation of multinational transfer pricing.The paper is divided into four parts, the specific logical structure as follows:Chapter one, Introduction. Mainly described the topic of significance in this article(Value), the literature review (Research), research methods and related concepts and the innovation and lack of content in this article.Chapter two, research on Multinational Transfer Pricing Theory. In this part, mainly analyses transfer pricing behavior of multinational companies in no supervision, revealing the purpose for abusing the internal transfer pricing. Section I, Explore the legitimacy of the legal regulation to multinational transfer pricing behavior, then find a legal basis for regulation. Section2Find the origin of transfer pricing, and then analyzes the theoretical basis of multinational transfer pricing in preparation for subsequent multinational transfer pricing behavior analysis. Section3, introduced the form of multinational transfer pricing transactions, revealing what transnational corporations do in specific transactions. The fourth quarter, start from the multinational corporation subjective point of view, expose the internal transfer pricing behavior of abuse transfer pricing behavior, and point out that the behaviors infringe the interests of China’s tax right, disorder the market competitive environment, as well as foreign exchange receipts and payments stability, direct or indirect infringe the interests of other investments, operators, revealing the necessary for China to strengthen the legal regulation of multinational transfer pricing.Chapter three, An empirical study of the legal regulation of multinational transfer pricing. First half of this chapter based on extraterritorial multinational transfer pricing legal system, have an empirical investigation and compare their advantages and disadvantages. Second half of the chapter does a research of our country’s legal system in transfer pricing, and point out the deficiencies of our current system. This chapter is specifically arranged in four sections, mainly from an empirical point of view to study the regulation of multinational transfer pricing. Section one, the historical evolution of the extraterritorial multinational transfer pricing legal system, starting from the transfer pricing based on United States, OECD regulation system. Section two, have a comparison in view of section one, find the advantages and disadvantages of the extraterritorial advanced transfer pricing regulation. Section three, describes the evolution of the legal system of China’s multinational transfer pricing. Section four, in-depth study on the current transfer pricing legal system found and put forward the deficiencies of the existing legal system.The final chapter is consisted of two sections. Refer to the previous chapter, the paper considers with the legal system of Chinese multinational transfer pricing realistic situation, give a advice to optimize the transfer pricing legal regulation. Section one, starting from the legislative point, give a suggestion increase or decrease some articles to improve the legal regulation of transfer pricing. Section two, make some suggestions in the field of multinational transfer pricing practice field, for the purpose of building in advance during and afterwards positive interaction multinational transfer pricing system.
Keywords/Search Tags:multinational corporation, transfer pricing, arm’s length principle, transfer pricing adjustment
PDF Full Text Request
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