Transfer Pricing in International Markets: Problems of Information Support
Oleg Fedorovich Shakhov1, Alexander Urevich Chernov2, Olga Valenrievna Kalashnikova3, Lola Dodohonovna Sanginova4, Mairbek Abuevich Katsiev5
1Oleg Fedorovich Shakhov, Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russian Federation.
2Alexander Urevich Chernov, Financial University under the Government of the Russian Federation (Financial University), Moscow, Russian Federation.
3Olga Valenrievna Kalashnikova, Financial University under the Government of the Russian Federation (Financial University), Moscow, Russian Federation.
4Lola Dodohonovna Sanginova, Financial University under the Government of the Russian Federation (Financial University), Moscow, Russian Federation.
5Mairbek Abuevich Katsiev, Chechen State University, Grozny, Chechnya, Russian Federation.
Manuscript received on 08 March 2019 | Revised Manuscript received on 16 March 2019 | Manuscript published on 30 July 2019 | PP: 3845-3849 | Volume-8 Issue-2, July 2019 | Retrieval Number: B2636078219/19©BEIESP | DOI: 10.35940/ijrte.B2636.078219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The article characterizes the transfer pricing in international markets, analyzes the “arm’s length principle” as the main principle of taxation of interdependent companies, the motivation of transfer pricing participants, the main features of the transfer pricing practice, and the system regulating the transfer pricing at the interstate level. Based on analyzing various aspects of information support for the transfer pricing system, it has been proved that the best approach to improving it is to establish a permanent document flow to substantiate the level of transfer prices and to further draw up management, financial and tax reports. The novelty of the study consists in the recommendations on the sequence of actions to form a unified system of document flow, and management and financial accounting that would provide management with the information on all transactions with affiliates.
Index Terms: Affiliates, Controlled Transactions, Document Flow, Transfer Price, Transfer Pricing.
Scope of the Article: Heat Transfer