Related-Party Transactions And Enterprise Strategy Disclosed By Transfer Pricing
| Autor: | Hui-Yu Cheng, 鄭惠瑀 |
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| Rok vydání: | 2007 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 95 Related-Party Transactions and Enterprise Strategy Disclosed by Transfer Pricing Abstract As a number of international enterprises have arranged technical tax planning through inappropriate transactions, the governments of many nations have established various Anti-Tax Shelters to counter the effects of International Tax Shelters in order to protect their taxation sovereignty and prevent tax-revenue losses. Following the international trend, the Taiwan government has established a complete auditing system, and issued: “Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm’s Length Transfer Pricing” on December 12, 2004, which is abbreviated as “Regulations for Transfer Pricing”. In the research, a thorough examination was made of the legislative history of the Regulations for Transfer Pricing and their field of application, the information which should be disclosed on related-enterprises’ transactions, the application of the OECD conventional transaction principle, and the measures which have been taken for handling transfer pricing. Data on related-party and their transactions should be revealed in the four Declarations for Transfer Pricing in accordance with the Regulations for Transfer Pricing. The eight principles of the Taiwan Conventional Transaction on Transfer Pricing should be taken as the rule for both the taxation office and taxpayers. The eight principles include: the principle of comparability, to use the most applicable methods of conventional transaction, to evaluate transactions individually, to use the data of the year the transaction occurred, to follow the conventional transaction rules, to analyze the reason for losses, to evaluate income and expenditure separately, and to follow other conventional transaction principles established by the R.O.C. Ministry of Finance. One of the goals of the research is to discuss the impact on enterprises of the treatment of related-party transactions announced in the Regulations of Transfer Pricing: 1. The impact on taxable income, taxable Profit-Seeking Enterprise Income, and business tax of enterprises. 2. Administrative disciplinary measures and judicial sanctions. 3. The impact on the risk faced by enterprises which use an OBU account as a tax shelter. 4. The impact on enterprises’ operating strategy, tax planning, and entire taxation environment. 5. The impact on the announcement of financial statements of public corporations. 6. The impact on the structure of related-person transactions, an area which has become even more complex. 7. The impact on the potential profit produced by the transfer pricing system. The second goal of the research is to discuss how enterprises should cope with the Regulations for Transfer Pricing in order to decrease tax risk: 1.To adjust enterprises’ structure and types of transactions. 2.Documents related to transfer pricing should be well kept. 3.To analyze transfer pricing and report the results accordingly. 4.To apply Advance Pricing Arrangements. 5.To consider the best strategy and solution for enterprises’ tax strategy. (1)Making use of the tax shelter clause and simplifying transfer pricing analyses. (2)The effect of analyses should be evaluated. (3)Evaluating customs duty-paid prices. (4)Seeking specialists’ advice. Key words: Transfer pricing, Related-party transaction,The arm，s length principle |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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