English, Article edition: TAX OPTIMIZATION OF MULTINATIONAL FIRMS THROUGH TRANSFER PRICING: A SURVEY OF MAIN THEORETICAL FOUNDATIONS AND POTENTIAL MACROECONOMIC IMPACTS Filip Novotný; 115 03 Praha 1 (filip.novotny@cnb.cz)

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/197886
Physical Description
  • article
Language
  • English

Edition details

Title
  • TAX OPTIMIZATION OF MULTINATIONAL FIRMS THROUGH TRANSFER PRICING: A SURVEY OF MAIN THEORETICAL FOUNDATIONS AND POTENTIAL MACROECONOMIC IMPACTS
Author
  • Filip Novotný
  • 115 03 Praha 1 (filip.novotny@cnb.cz)
Physical Description
  • article
Notes
  • transfer pricing, tax optimization, multinational firm, marginal costs, Imperfect competition, foreign trade
  • RePEc:prg:jnlpol:v:2008:y:2008:i:1:id:629:p:40-53
  • If taxes are the same across countries and no tariffs are imposed on international trade, the optimal strategy of a multinational firm is to set transfer prices at marginal costs of its affiliated firms. But in reality we observe trade tariffs and tax differences among countries which lead multinational firms to deviate transfer prices from marginal costs. Multinationals use transfer prices in order to increase profits in affiliates which are located in low tax countries at the expense of affiliates which are located in high tax countries. I demonstrate on a sample of EU countries that the lower the tax rate in a country the higher the profitability of foreign direct investment in that country. As some studies suggest the gross value added and export prices are artificially overvalued in low tax countries and artificially undervalued in high tax countries.
  • Imperfect competition, foreign trade, marginal costs, multinational firm, tax optimization, transfer pricing
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment