Ways to Effectively Manage the Risks Associated with Transfer Pricing

Ileana Tache () and Mihaela Paraschiva Luca ()
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Ileana Tache: Transilvania University of Brasov
Mihaela Paraschiva Luca: Lucian Blaga University

A chapter in Organizations and Performance in a Complex World, 2021, pp 313-324 from Springer

Abstract: Abstract The issue of transfer pricing is a priority one for multinational companies or for those having related party transactions. This work presents and analyses theoretical aspects related to the the way transfer pricing legislation influences a company’s tax policy and practical aspects, contributing to the efficient management of the risks associated with transfer pricing. By documenting on the existing bibliography in the field, processing and interpreting statistical data or by comparative analysis of data, our paper arrives at the conclusion that, to effectively manage the risks associated with transfer pricing the following points are essential: appropriate management that defines a transfer pricing policy based on a critical analysis of the main risk areas, taking into consideration the possibility of resorting to an advance pricing agreement and the availability for ensuring and training staff that prepares, manages, monitors and is accountable to the supervisory authorities for transfer pricing documentation.

Keywords: Arm’s length principle; Tax planning; Tax authorities; Advance pricing agreement (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-50676-6_25

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DOI: 10.1007/978-3-030-50676-6_25

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