Transfera pricinga allowsa fora thea establishmenta ofa pricesa fora thea goodsa anda servicesa exchangeda
betweena subsidiaries,a aliates,a ora commonlya controlleda companiesa thata area parta ofa thea samea largera
enterprise.a Transfera pricinga cana leada toa taxa savingsa fora corporaons,a thougha taxa authoriesa maya
contesta theira claims.a Companiesa usea transfera pricinga toa reducea thea overalla taxa burdena ofa thea parenta
companya (Seth,a Andersona &a Peres,a 2023).a Therefore,a transfera pricinga isa aa toola mulnaonala groupsa
usea toa reducea theira taxa burdena alonga witha thea cushiona provideda bya IRCa §a 482a ona howa corporaona
transfera pricing,a whicha statesa thata 'ina anya casea ofa twoa ora morea organizaons,a trades,a ora businessesa
owneda ora controlleda directlya ora indirectlya bya thea samea interests,a thea Secretarya maya distribute,a
apporon,a ora allocatea grossa income,a deducons,a credits,a ora allowancesa betweena ora amonga sucha
organizaons,a trades,a ora businessesa ifa hea determinesa thata sucha distribuon,a apporonment,a ora
allocaona isa necessarya toa preventa evasiona ofa taxes.a Thea IRSa acknowledgesa thea valuaonsa and,a
therefore,a ita woulda nota bea considereda illegal.
Facebooka conducteda transfera pricinga ina 2010a toa reducea taxablea incomea withina thea Uniteda States.a
Thea IRSa opposeda aa transfera pricinga calculaona bya Facebooka ina 2016a whena thea sociala mediaa gianta
claimeda ita transferreda $6.5a billiona ofa intangiblea assetsa toa Ireland.a Witha thea triala expected,a Facebooka
woulda bea requireda toa paya upa toa $5a billiona ina taxesa (withouta penalesa anda interest)a ifa IRSa winsa thea
case.
Thea reporta statesa thata Facebooka solda thea intellectuala propertya ina aa foreigna country,a whicha leda thea
IRSa toa invesgatea howa ita moveda assetsa toa ana Irisha subsidiarya toa avoida highera taxes.a Oura basica legala
anda economica insistencea isa thata taxa isa duea wherea thea valuea isa created.a Thisa isa thea samea asa tryinga toa
taxa ina thea jurisdicona wherea thea economica acvitya occurs.a Ifa thea assetsa falla undera thea samea
company,a therea shoulda nota bea anya taxaona ona transferringa saida assets.a Ina somea cases,a thea companya
isa double-taxed.a Ona thea othera hand,a somea companiesa abusea exibilitya anda transfera assetsa withina thea
companya toa dierenta locaonsa ina countriesa witha lowera taxa brackets.a
Transfera pricinga isa thea praccea ina whicha companiesa anda subsidiariesa whicha area undera shareda ora
commona controla cana ascertaina thea pricea ofa goodsa ora servicesa ata ana internala level.a Accordinga toa
Schwartza eta al.a (2021),a thea transfera pricinga praccea maya bea exploiteda bya businessa enesa fora thea
purposea ofa avoidinga taxa sincea ita leadsa toa thea corrosiona ofa taxa bases.a Corporatea taxa becomesa duea
whena economica valuea isa createda (Forbes,a 2016).a Ita isa essenala toa idenfya wherea valuea isa createda soa
thata thea appropriatea paresa cana bea taxeda fora thea same.a Accordinga toa thea U.S.a Taxa Code,a taxa isa
applicablea ina thea regiona wherea valuea isa created.a Fora companiesa sucha asa Facebooka anda Apple,a sucha aa
quesona isa complexa asa thea valuea thata isa createda bya thema isa associateda witha theira intellectuala
propertya rights.
Companiesa maya decidea toa engagea ina transfera pricinga toa leveragea thea exiblea taxa arrangementsa anda
lawsa thata exista ina foreigna regions.a Fora example,a Irelanda isa aa taxa havena wherea companies,a especiallya
thea onesa thata area involveda ina researcha anda developmenta acvies,a doa nota havea toa paya taxes.a Duea toa
this,a theya cana amplifya theira protsa bya savinga taxes.a Applea hasa transferreda itsa businessa protsa toa
Ireland,a whicha enablesa thea companya toa savea taxesa thata ita woulda havea otherwisea paida toa thea
governmenta ofa thea Uniteda Statesa ofa America.a Thea praccea thata Applea Inc.a hasa engageda ina isa fair,a anda
ita doesa nota violatea thea taxa rulesa ina Ireland.a Neithera doesa ita violatea thea taxa rulesa ofa thea USa sincea thea
taxa arrangementa thata hasa beena madea ina thea naona isa applicablea fora companiesa thata decidea toa bringa
backa theira protsa toa thea country.a Ina casea theira protsa remaina ina foreigna lands,a thea USa cannota claima
taxes.
Thea praccea ofa transfera pricinga cana bea juseda sincea ita createsa ana opportunitya fora businessa enesa
toa reducea thea taxa burdena ofa thea parenta organizaona bya makinga internala transfersa toa minimizea thea
taxa base.a Althougha transfera pricinga isa aa faira praccea thata isa legallya allowed,a ita hasa thea potenala toa
givea risea toa complexiesa ina termsa ofa taxa computaonsa (Marna eta al.,a 2020).a Moreover,a thea taxaona
arrangementa cana bea exploiteda anda abuseda bya unethicala companiesa fora thea purposea ofa evadinga thea
taxa amounta thata theya needa toa paya ina theira normala coursea ofa business.a Ita isa instrumentala toa havea
comprehensivea knowledgea ona transfera pricinga anda accordinglya integratea thea praccea intoa thea
business.
Referencea
Marn,a M,a KPMG,a U.,a anda Bege,a T.,a 2020.a Transfera pricinga remainsa cruciala asa IRSa CAPa programa
opensa fora 2021.a Internaonala Taxa Review.
Schwartz,a S.a C.,a Mashiri,a E.,a &a Sebele-Mpofu,a F.a (2021).a Ana exposiona ofa transfera pricinga moves,a
strategies,a anda theira implementaona ina taxa avoidancea bya MNEsa ina developinga countries.a Cogenta
Businessa &a Management,a 8(1),a 1944007.
Whata Facebooka anda applea cana teacha youa abouta transfera pricing.a (2016).a Forbes.a
hps://www.forbes.com/sites/mworstall/2016/07/29/facebooks-fun-with-transfer-pricing-and-joe-
sglitz-doesnt-understand-apples-tax-at-all/?sh=b9430483838b
Seth.a S.,a Anderson.a S.a &a Perez.a Y. a (2023).a Transfera Pricing.a Retrieveda froma
hps://www.investopedia.com/terms/t/transfer-pricing.asp
