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Transfer pricing

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Uploaded by on Aug 9, 2007

A discussion of transfer pricing and its impact on taxation

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News & Politics

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Standard YouTube License

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Uploader Comments (RichardMurphyTax)

  • I beleive you are missing the point. Transfer pricing itself is not illegal, it is merely a concept. Most countries have transfer pricing regulations within their tax laws which corporations must comply with. If a company was found to be breaching these regulations ie. setting an artificial price and avoiding tax, the aggrieved tax authority could launch a challenge. If this were to be sucessful the company would be liable for the tax it has evaded. See the US case of Glaxo SmithKline.

  • I have not disputed a word you have said. I agree with you.

    BUT most countries in the world do not have transfer pricing regimes, tax havens never question transfe prices, intellectual property makes the abuse easy and those countries with the law to challenge such structures do not have the resources to do so in most cases.

    The result is that it is estimaed that 7% of world trade is, in total, mispriced.

    The cost to developing nations is greatest.

    This is undeniable,

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All Comments (9)

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  • thanks for the clear explanation. Really helped!

  • great explanation, thanks!

  • Legal yes, ethical?

  • thanks to your explanation, it pretty much summarised the OECD

  • No way. Since it is not illegal I would happily do it. After all governments over tax anyway and most politicians ain't honest so reducing my tax bill legally is wholly desirable! But I certainly don't support tax evasion which is an entirely illegal and immoral concept.

  • This guy might be right. But dont let him explain it. He is great at explaining it to other egg heads, like himself. I dont know which country hs is talking about.

    This idea needs a better name, and an explanation that a sophomore in high school could explain to his parents.

  • Yeah I would say so ,Im very socialy and economicaly concous but lack the education and this pretty much broke it down for as far as tranfer pricing and taxtation,thank you.

    P.S. You should make more videos!

  • Great Explanations !

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