Tax Avoidance and Regulation of Transfer Pricing: From the Perspective of International Law

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.

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Publication Details

Journal
Lecture Notes in Education Psychology and Public Media
Published
2024-09-10
DOI
https://doi.org/10.54254/2753-7048/65/2024mu0023
Primary Topic
Taxation and Legal Issues
Type
article
Field-Weighted Citation Impact
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article

Tax Avoidance and Regulation of Transfer Pricing: From the Perspective of International Law

Yuqin Wang
Lecture Notes in Education Psychology and Public Media
Taxation and Legal Issues
article

Tax Avoidance and Regulation of Transfer Pricing: From the Perspective of International Law

Yuqin Wang
article en

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.

Lecture Notes in Education Psychology and Public MediaVol. 65(1)
Shandong University of Political Science and Law (CN)
Openalex Percentile: Top 75%
Taxation and Legal Issues
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