Hello,
As aforementioned a couple of posts ago, I've been very busy writing my EPQ, a 5000 word essay / dissertation on Corporate Tax Avoidance. The EPQ is supposed to take 80 hours, and as such I've been doing a great deal of research on international Corporate Tax issues.
One of the things which I was surprised and interested to learn and find out about was Transfer Pricing /Mispricing and the damage it causes to developing countries.
Transfer pricing occurs when two related companies, or companies owned by the same entity, trade with each other. This transaction occurs at an artificial price, that is to say one which is not determined by the supply/ demand equilibrium for the good/ service, and hence is designed to siphon profits made by the corporation into a lower-tax jurisdiction.This causes an estimated $150 billion a year to be channeled out of Africa per annum, and is one of the leading issues regarding to international tax laws.
I have written around 2500 words thus far, and completed the pertinent research for my EPQ Project. Hopefully you'll enjoy reading it once finished !
Jack.
No comments:
Post a Comment