THE TRANSFER PRICING DECISION PROCESS FOR MULTINATIONAL CORPORATIONS

Abstract

This paper represents a discussion of transfer pricing (TP). Key factors are identified and propositions developed from tax accounting and other perspectives. Stages of the TP decision process are identified along with the critical factors directly affecting sales and a TP audit. Propositions are derived which show relationships among these variables and tax rates, competition, and TP methodologies. Finally, academic research implications are suggested.

Citation

Rae Bateman, C., Herndon, N.C. and Fraedrich, J.P. (1997), "THE TRANSFER PRICING DECISION PROCESS FOR MULTINATIONAL CORPORATIONS", International Journal of Commerce and Management, Vol. 7 No. 3/4, pp. 18-38. https://doi.org/10.1108/eb047354