{"id":23108,"date":"2013-11-14T15:58:05","date_gmt":"2013-11-14T15:58:05","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=23108"},"modified":"2013-11-14T15:58:15","modified_gmt":"2013-11-14T15:58:15","slug":"for-those-not-familiar-with-transfer-pricing-some-introductory-material","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/11\/14\/for-those-not-familiar-with-transfer-pricing-some-introductory-material\/","title":{"rendered":"For those not familiar with transfer pricing, some introductory material"},"content":{"rendered":"<p>There's <a title=\"Are accountants or tax lawyers right? Do we ignore intra-group intangibles, or not?\" href=\"http:\/\/www.taxresearch.org.uk\/Blog\/2013\/11\/14\/are-accountants-or-tax-lawyers-right-do-we-ignore-intra-group-intangibles-or-not\/\" target=\"_blank\">some debate going on around this blog relating to\u00a0transfer pricing at the moment<\/a>.<\/p>\n<p>For those not familiar with the subject here's my introductory video on this issue, made some year's ago, but still pretty relevant:<\/p>\n<p><iframe loading=\"lazy\" title=\"Transfer pricing\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/_rK5InIEvmw?start=62&feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>However, in this I only look at the problems, not the answers.\u00a0For those looking to discuss the answers in a little more depth <a href=\"http:\/\/www.taxjustice.net\/cms\/front_content.php?idcat=139\" target=\"_blank\">the\u00a0Tax Justice Network page on the issue is worth a look<\/a>.<\/p>\n<p>A recent discussion by me on unitary <a href=\"http:\/\/www.taxresearch.org.uk\/Blog\/2013\/07\/04\/solving-the-problems-within-unitary-taxation-my-discussion-at-todays-tax-justice-network-conference\/\" target=\"_blank\">tax is highlighted here<\/a>.<\/p>\n<p>Sol Picciotto's paper on UT is here, and is well worth reading <a href=\"http:\/\/www.taxjustice.net\/cms\/upload\/pdf\/Towards_Unitary_Taxation_1-1.pdf\" target=\"_blank\">as it highlights the whole problem with\u00a0transfer pricin<\/a>g.<\/p>\n<p>The work of the late Mike McIntyre on this issue is also well worth reading: <a href=\"http:\/\/www.mtc.gov\/uploadedFiles\/Multistate_Tax_Commission\/Uniformity\/Uniformity_Committee_and_Subcommittees\/09_Winter_Committee_Meeting\/McIntyre%20-%20theory%20of%20apportionment.pdf\" target=\"_blank\">try this one<\/a>.<\/p>\n<p>And then for those who want to put this into context <a href=\"http:\/\/www.essex.ac.uk\/ebs\/research\/working_papers\/wp2010-1%20-%20psikka%20transfer%20pricing%20paper.pdf\" target=\"_blank\">there's a 201o paper from Prem Siika - an enormously downloaded paper<\/a>, the abstract of which says:<\/p>\n<blockquote><p>In conventional accounting literature, \u00e2\u20ac\u2014transfer pricing\u2018 is portrayed as a technique for\u00a0optimal allocation of costs and revenues amongst divisions, subsidiaries and joint\u00a0ventures within a group of related entities. Such representations of transfer pricing\u00a0simultaneously acknowledge and occlude how it is deeply implicated in processes of\u00a0wealth retentiveness that enable companies to avoid taxes and facilitate the flight of\u00a0capital. A purely technical conception of transfer pricing calculations abstracts them\u00a0from the politico-economic contexts of their development and use. The context is the\u00a0modern corporation in an era of globalized trade and its relationship to state tax\u00a0authorities, shareholders and other possible stakeholders. Transfer pricing practices\u00a0are responsive to opportunities for determining values in ways that are consequential\u00a0for enhancing private gains, and thereby contributing to relative social\u00a0impoverishment, by avoiding the payment of public taxes. Evidence is provided by\u00a0examining some of the transfer prices practices used by corporations to avoid taxes in\u00a0developing and developed economies.<\/p><\/blockquote>\n<p>My point is that those who say that the problems within\u00a0transfer pricing are not documented are wrong; they are, and we have made the case for the alternatives, often.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There&#8217;s some debate going on around this blog relating to\u00a0transfer pricing at the moment. For those not familiar with the subject here&#8217;s my introductory video<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/11\/14\/for-those-not-familiar-with-transfer-pricing-some-introductory-material\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51,1],"tags":[],"class_list":["post-23108","post","type-post","status-publish","format-standard","hentry","category-transfer-pricing","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/23108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=23108"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/23108\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=23108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=23108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=23108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}