Application of detection methods on controlled transactions of concerns „Transfer pricing“

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Application of detection methods on controlled transactions of concerns „Transfer pricing“

Popis výsledku v původním jazyce

Controlled transactions of concerns and multi-national groups of business corporations transfer pricing are conducted intentionally. The primary purpose of concern transactions is to use the capital power of the concern for the backup of the concern transactions that lead to increased profits and the economic value of the concern. Due to imperfect and unsatisfactory regulatory legislation of the accounting concerns and multi-national corporations use the loopholes in legislation for the transfer of profits to areas with lower tax legislation for optimize their net profit which is the basis for the payment of dividends and for the pecuniary transfer flow between the mother company and its daughter companies. The mother company should choose such methods for setting the transfer pricing that lead to higher profits of the concern group of corporations and to the maximization of the value of the owners.Methodology of the transfer pricing of concerns must be controlled not only from the tax perspective to prevent tax avoidance by moving money to countries with lower tax burden but also from the accounting perspective so that the controlled transactions were not overprized by fictitious service costs that distort the economic result and decrease the value for the owners. This paper deals with the practical application of detection methods aimed at revealing fictitious services included into transfer prices of concerns and suggests possible solution through accounting based on value forming activities and modification of the profit and loss account.

Název v anglickém jazyce

Application of detection methods on controlled transactions of concerns „Transfer pricing“

Popis výsledku anglicky

Controlled transactions of concerns and multi-national groups of business corporations transfer pricing are conducted intentionally. The primary purpose of concern transactions is to use the capital power of the concern for the backup of the concern transactions that lead to increased profits and the economic value of the concern. Due to imperfect and unsatisfactory regulatory legislation of the accounting concerns and multi-national corporations use the loopholes in legislation for the transfer of profits to areas with lower tax legislation for optimize their net profit which is the basis for the payment of dividends and for the pecuniary transfer flow between the mother company and its daughter companies. The mother company should choose such methods for setting the transfer pricing that lead to higher profits of the concern group of corporations and to the maximization of the value of the owners.Methodology of the transfer pricing of concerns must be controlled not only from the tax perspective to prevent tax avoidance by moving money to countries with lower tax burden but also from the accounting perspective so that the controlled transactions were not overprized by fictitious service costs that distort the economic result and decrease the value for the owners. This paper deals with the practical application of detection methods aimed at revealing fictitious services included into transfer prices of concerns and suggests possible solution through accounting based on value forming activities and modification of the profit and loss account.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2018

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of the 12th International Scientific Conference INPROFORUM. Innovations, Enterprises, Regions and Management

ISBN

978-80-7394-726-2

ISSN

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e-ISSN

neuvedeno

Počet stran výsledku

7

Strana od-do

66-72

Název nakladatele

Jihočeská univerzita v Českých Budějovicích, Ekonomická fakulta

Místo vydání

České Budějovice

Místo konání akce

České Budějovice

Datum konání akce

1. 11. 2018

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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