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