Document Type
Article
Publication Date
1-2014
Abstract
The OECD has recently come to recognize that the transfer pricing system does not work as intended. In its report on base erosion and profit shifting 2013 WTD 140-17: Other Administrative Documents, the OECD recognizes that BEPS results in revenue losses that affect all states, especially poorer ones; that systematic tax avoidance by the richest and most powerful companies in the world undermines the general legitimacy of taxation; that it gives MNEs significant competitive advantages over purely domestic firms, resulting in inefficient allocations of investment and major distortions to economic activity; and that it skews the decisions of the MNEs themselves, resulting in overall economic welfare losses.
Recommended Citation
Avi-Yonah, Reuven S. "Back from the Dead: Reviving Transfer Pricing Enforcement." Tax Notes Int'l 73, no. 1 (2014): 10-3.
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Business Organizations Law Commons, Legislation Commons, Taxation-Federal Commons, Taxation-Transnational Commons
Comments
Reprinted with the permission of Tax Analysts.