Revenue distribution in multinational firms through transfer pricing

Jose Vargas-Hernandez, Deyanira Bernal Domínguez () and Rubén Miranda López ()
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Deyanira Bernal Domínguez: Facultad de Contaduría y Administración de la Universidad Autónoma de Sinaloa. Ciudad Universitaria, Blvd. Universitarios y Avenida De las Américas, Culiacán, Sinaloa, México.
Rubén Miranda López: Facultad de Contaduría y Administración de la Universidad Autónoma de Sinaloa. Ciudad Universitaria, Blvd. Universitarios y Avenida De las Américas, Culiacán, Sinaloa, México.

Economía, 2013, vol. 38, issue 36, 67-84

Abstract: The objective of this paper is to analyze the procedures used by multinational enterprises to distribute the revenue generated by their subsidiaries abroad. Also, the paper intends to answer the question how multinational enterprises (mnes) allocate taxes paid on this income among the fiscal jurisdictions in which they operate. In this study, the analytic research method was applied, in the literature review, in order to determine how income-shifting works as a fiscal strategy applied by mnes. It is concluded that mnes use organizational strategies to take advantage of the comparative advantages from the different countries in which they operate, and, as a result, an intercompany trade takes place.

Keywords: Multinational firms; transfer pricing; income shifts. (search for similar items in EconPapers)
JEL-codes: D33 E31 F23 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ula:econom:v:38:y:2013:i:36:p:67-84

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