A Study Of Tax Avoidance In Multinational Enterprises Transfer Pricing

In the context of economic globalization,transnational corporations have also developed rapidly and become an important pillar of global economic growth.In the competitive market environment,transfer pricing is one of the most important measures taken by multinational enterprises to optimize their supply chain configuration and profit maximization after tax.Today,a growing number of multinational companies are shifting their profits from high-tax areas to low-tax areas for tax arbitrage and greater after-tax profits in the supply chain through transfer pricing.In this era of more and more perfect enterprise system,countries all over the world pay more and more attention to the tax avoidance behavior of enterprises using transfer pricing.This paper uses the method of theory and case analysis to analyze the transfer pricing method adopted by starbucks for tax avoidance,based on the basic frame of transfer pricing theory,the motivation and the way of tax avoidance,it is concluded that multinational enterprises obtain the maximum profits by transfer pricing,but it has a negative impact on international tax revenue and the tax base of the host country.This article will put forward the relevant measures of transfer pricing tax avoidance from the perspective of multinational taxpayers and tax authorities,from which we can get the enlightenment of transfer pricing tax avoidance for multinational enterprises in China.