{"id":4805,"date":"2009-09-16T17:38:22","date_gmt":"2009-09-16T15:38:22","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/2009\/09\/16\/how-to-tackle-transfer-pricing-abuse\/"},"modified":"2009-09-16T17:38:22","modified_gmt":"2009-09-16T15:38:22","slug":"how-to-tackle-transfer-pricing-abuse","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2009\/09\/16\/how-to-tackle-transfer-pricing-abuse\/","title":{"rendered":"How to tackle transfer pricing abuse"},"content":{"rendered":"

Raymond Baker has suggested the following as ways to tackle transfer mispricing during a talk today at the Task Force conference<\/a>:<\/p>\n

\n

Actions to Curtail Abusive Transfer Pricing - Industrialized Countries<\/strong> <\/p>\n

\u00ac? Bring imports and exports under the same regulatory regime. They’re not in many places.<\/p>\n

\u00ac? Educate employees dealing with international trade about laws against mail fraud, wire fraud, and schemes to defraud.<\/p>\n

\u00ac? Educate auditors about the risk of advising on or observing abusive transfer pricing. <\/p>\n

\u00ac? Require auditors to note on audited accounts evidence seen of abusive transfer pricing. <\/p>\n

\u00ac? Require CEOs and CFOs to attest that there has been no violation of statutes against mail fraud, wire fraud, and schemes to defraud.<\/p>\n

\u00ac? Include evaluations of abusive transfer pricing in corporate responsibility ratings. <\/p>\n

\u00ac? Request that the World Trade Organization address the issue of abusive transfer pricing. <\/p>\n

Actions to Curtail Abusive Transfer Pricing - Developing Countries <\/strong><\/p>\n

\u00ac? Adopt legislation requiring that imports and exports are to be transacted at fair world market prices.  <\/p>\n

\u00ac? Adopt legislation making it a felony offense to offer abusive transfer pricing, tax evading, or money laundering services. <\/p>\n

\u00ac? Require auditors to note evidence of abusive transfer pricing on audited accounts. <\/p>\n

\u00ac? Require companies doing business with government to attest that there has been no use of abusive transfer pricing.  <\/p>\n

\u00ac? Require transactions above a designated value to be conducted via confirmed, irrevocable letters of credit.  <\/p>\n

\u00ac? Consider utilizing pre-shipment inspection and price checking services. This might prove the goods invoiced are the goods shipped. <\/p>\n

\u00ac? Consider utilizing online pricing data by customs authorities. This is available.<\/p>\n

\u00ac? Two signatures on a paragraph in the standard commercial invoice form, as follows: <\/p>\n

A) All items covered by this invoice are at fair world market prices and contain no element of mispricing for the purpose of manipulating VAT taxes, customs duties, or income taxes.  <\/p>\n

B) This transaction conforms to all banking statutes, exchange control regulations, and anti-money laundering laws of all countries where the transaction originated, through which it passed, and into which it arrived.  <\/p>\n

C) No commissions or third-party payments are paid or payable to any domestic or foreign account except as noted in a written statement.<\/p>\n<\/blockquote>\n

Much of the last few days have been spent discussing arm’s length pricing. Many argue that there is no alternative. I don’t agree. But I am also pragmatic: change takes time and the Big 4 are as wedded to the arm’s length pricing model as are the OECD; they make a great deal of money from it.<\/p>\n

The above recommendations are different. The reality is that whatever the rule it can be abused. I know that. The above all have one goal: penalise those who abuse.<\/p>\n

And I applaud that.<\/p>\n

Compliance increases when some go to prison with good reason. I suspect that’s a fact on which we can all agree. <\/p>\n","protected":false},"excerpt":{"rendered":"

Raymond Baker has suggested the following as ways to tackle transfer mispricing during a talk today at the Task Force conference: Actions to Curtail Abusive
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