The impact of transfer pricing laws on import mis-pricing – Evidence from Denmark

Knoll, Bodo; Kruse-Becher, Sanne; Riedel, Nadine


Abstract
Many countries have recently introduced transfer pricing regulations to constrain multinational profit shifting from high-tax to lower-tax affiliates through strategic mis-pricing of intra-firm trade. We rely on rich administrative firm-level trade data for Denmark to show that tighter transfer pricing rules effectively reduce tax-motivated trade mis-pricing.

Keywords
Anti-shifting provisions; Transfer pricing



Publication type
Research article (journal)

Peer reviewed
Yes

Publication status
Published

Year
2023

Journal
Economics Letters

Volume
233

Publisher
Elsevier B.V.

Language
English

ISSN
0165-1765

DOI