<p>This master’s thesis compares the OECD transfer pricing recommendations with the transfer pricing rules of the US. The main focus is the ethical pharmaceutical industry and intangible property, in particular marketing intangibles. The Glaxo case is used to illustrate how the US takes advantage of areas of uncertainty to increase the country’s tax revenue. The US shows little consideration for the OECD’s objectives of having a set of universally applicable transfer pricing rules. The purpose of this master’s thesis is to explain and analyze why the IRS took a new approach on marketing intangibles in the Glaxo case, evaluate the global effect of the Glaxo case, and discuss how similar situations should be dealt with in the future.</p><p>The natural forum to achieve universally harmonized transfer pricing rules is the OECD. When the OECD fails to provide adequate recommendations, the US and other countries take matters into their own hands by constructing rules deviating from the recommendations of the OECD. These rules tend to put the countries’ interests first creating a competitive international transfer pricing community harmful to MNEs. The consequence is a negative effect on global trade and investment.</p><p>In the Glaxo case the US took advantage of the area of uncertainty regarding intangible property and marketing intangibles to serve its own purpose and came up with a new approach on marketing intangibles. This approach has consequences for all MNEs with affiliates in the US and distributors outside the US. The new approach states that the value of a product is attributable to the marketing activities conducted by a US subsidiary rather than to R&D carried out by a UK parent. The new approach may affect distributors outside the US since the value they have can be allocated to a US affiliate conducting marketing and sales activities. The ethical pharmaceutical industry depends on intangible property and R&D is the most important value-driver in this industry. In addition, the characteristics of the ethical pharmaceutical industry are such that ethical pharmaceutical companies are priority targets of the IRS’s audits. If the IRS’s new approach prevails, the negative consequences for the ethical pharmaceutical industry as well as the society as a whole may be severe.</p><p>There are three main conclusions and recommendations in this master’s thesis. First, the Member countries of the OECD have to respect the principle of transfer pricing as neutral concept. Second, tax authorities must take into consideration the sound business reasons of MNEs and understand their need for tax predictability. Finally, it is in the interest of all countries to cooperate and establish a uniform interpretation and application of transfer pricing thereby avoiding double taxation and creating a balance in the international transfer pricing community.</p> / <p>Denna magisteruppsats jämför OECD:s rekommendationer gällande internprissättning med de amerikanska internprissättningsreglerna. I uppsatsen fokuserar författarna på internprissättningsproblematiken gällande immateriella tillgångar i läkemedelbranschen, med särskilt fokus på den typ av immateriella tillgångar som uppstår genom försäljning och marknadsföring (marketing intangibles). USA använder sig av områden där rättsläget är osäkert för att öka sina skatteintäkter. För att illustrera detta beskrivs och analyseras Glaxo-fallet. USA visar på så sätt lite hänsyn till ett av OECD:s viktigaste mål; att skapa en universellt harmoniserad tolkning och tillämpning av internprissättning för att motverka dubbelbeskattning och öka möjligheten för multinationella företag att förutse och planera sin skatt. Syftet med denna magisteruppsats är att förklara och analysera varför den amerikanska skattemyndigheten (IRS) valde en ny inställning till marketing intangibles i Glaxo-fallet, utvärdera den globala effekten av Glaxo-fallet och diskutera hur liknande situationer bör hanteras i framtiden.</p><p>OECD är det mest lämpliga instrumentet för att skapa en internationell konsensus på internprissättningsområdet. Eftersom internprissättning av transaktioner som involverar immateriella tillgångar och särskilt marketing intangibles utgör ett osäkert område med endast lite vägledning från OECD finns det stort utrymme för länder att skapa egna regler och rättspraxis på området. När länder som USA tar saken i egna händer och skapar sina egna regler inom internprissättning tenderar de att sätta sina egna intressen i första rummet. Konsekvensen blir en internationell internprissättningsmiljö där konkurrensen om de multinationella företagens vinster är stor, vilket skadar den internationella handeln och investeringsviljan hos företag. Det är just detta som skett i Glaxo-fallet.</p><p>Resultatet av Glaxo-fallet blev en ny inställning till hanteringen av denna typ av transaktioner, något som USA länge eftersökt för att lösa problemet med en minskande skattebas. Den nya amerikanska inställningen får konsekvenser för alla multinationella företag med företag i intressegemenskap i USA och distributörer utanför USA. USA sänder nu ut en signal att värdet av en produkt inte styrs utav de år av forskning och utveckling som krävdes för att skapa ett patent av det brittiska moderbolaget i Glaxo-fallet. Istället är det de immateriella tillgångar som uppkommer av försäljnings- och marknadsföringsaktiviteter som tillför en produkt det egentliga värdet. I Glaxo-fallet innebar detta att en majoritet av vinsten av försäljningen av läkemedlet Zantac skulle hänföras till det amerikanska dotterbolaget och därmed beskattas i USA. Inställningen innebär att distributörer utanför USA kan komma att påverkas genom att värdet de tillfört genom forskning och utveckling eller andra viktiga funktioner kan bli mindre betydelsefullt än värdet som tillförs av marknadsföring. Läkemedelsbranschen är beroende av immateriella tillgångar för att kunna fungera och forskning och utveckling är den mest betydelsefulla värdeskapande funktionen inom industrin. Företag i läkemedelsbranschen är dessutom mycket benägna att hamna i blickfånget för internprissättningsrevisioner. Om den nya amerikanska inställningen vinner mark är det mycket troligt att konsekvenserna blir allvarliga både för läkemedelsindustrin och för samhället i stort.</p><p>I denna magisteruppsats har författarna antagit tre huvudsakliga slutsatser med rekommendationer. Den första är att OECD:s medlemsländer måste respektera principen om en neutral inställning till internprissättning. Som en andra slutsats kan sägas att skattemyndigheter måste beakta de affärsmässiga skälen till de transaktioner som företas av multinationella företag och förstå multinationella företags behov av förutsebarhet beträffande beskattning. Slutligen ligger ett internationellt samarbete i alla länders intresse och en internationell konsensus gällande tolkning och tillämpning av internprissättning skapar balans och motverkar dubbelbeskattning.</p>

<p>The purpose of this master’s thesis is to examine and analyse how a transfer pricing adjustment is made and how related parties should handle price adjustments from a customs perspective in Sweden. The examination includes describing the valuation methods available for transfer pricing and customs valuation with regards to related parties. In addition, the differences in connection to the valuation are described and analysed.</p><p>Goods imported to Sweden must be cleared through customs: the importer presents a customs declaration to the Swedish Customs and pays customs duty. The customs duty is calculated using a customs value and customs valuation is the system that enables the importer to establish correct customs values on imported goods. Transfer pricing is the determination of prices on transactions taken place between companies belonging to the same group and has a direct effect on the income tax payable. There are six customs valuation methods that are hierarchically applied and six transfer pricing methods that are applied somewhat differently. There are similarities between the methods and most of the customs valuation methods have a corresponding transfer pricing method, or vice versa. Even if there are similarities, many factors make reconciliation of the methods difficult. Such factors are the different time for assessing the value and that the customs valuation methods are applied in a strictly hierarchical way with no possibility to choose the most suitable method.</p><p>Customs duties and transfer pricing both share the same valuation concept, although interpreted differently, being that the value shall be based on the price that the parties would arrive at under open market conditions. However, relevant values on the same transaction differ significantly due to trying to be in accordance with respective rules. The differences in expectations and the conflicting interests on the outcome of the valuation lead to problems in the tax field. As a conclusion, customs valuation and transfer pricing can undeniably be described as “the two opposing and necessary sides of the same ‘coin’, whose respective values unavoidably affect the whole balance of a system of closely connected valuation”.</p><p>In order for related parties to use the transaction value method, which is the superior customs valuation method, the price must not have been influenced due to their relationship. If one of two tests prescribed by law can prove that the relationship has not influenced the price, the related parties can use the transaction value method to establish the customs value. If the transaction value, for some reason cannot be used, the importer has to address other options on to how to establish the customs value.</p><p>The conclusion of this master’s thesis is that related parties should include a price review clause in their contract or pricing policy. The company should notify the Swedish Customs about the provisional price and make an incomplete customs declaration. When information enabling the calculation of the customs value is available, the importer should file a complementary declaration. As an alternative, the importer should declare an open claim to the Swedish Customs arguing that the transaction value cannot be applied and, as a consequence thereof, explain in the customs value declaration why the applied customs value is correct.</p><p>This thesis provides three recommendations concerning how to deal with the complications of customs valuation and transfer pricing. The first recommendation is that rules and recommendations surrounding transfer pricing and customs valuation should, to the extent possible, be harmonised. The second recommendation is that co-operation between the Swedish Tax Agency and the Swedish Customs must improve, for example through advance pricing arrangements for both transfer pricing and customs purposes, documentation requirements, and joint audits. The third recommendation is that related parties should take the same care and documentation approach for customs purposes as it does for transfer pricing. Importing companies should make a price review clause in their contract before the importation and present an incomplete customs declaration. This way, in case of adjustments, the related party is able to uphold an arm’s length standard on the price and has the possibility to use the preferred transaction value for customs purposes, if that is desirable.</p>

<p>This thesis answers the question “How does the application of the Swedish adjustment rule correspond to the OECD point of view regarding intragroup loans to thinly capitalised companies?” The question is answered by using the traditional legal method and by examining the way the adjustment rule is applied by the Supreme Administrative Court, the Swedish approach when using the arm’s length principle in Swedish law is then compared to the approach recommended by the OECD.</p><p>From a tax point of view intragroup prices on commodities and services are of vital importance for multinational enterprises, since these prices in the end affects the total corporate taxation. Also the way of financing a company can have tax implications since it could be an advantage for an MNE to arrange financing of companies within the group through loans rather than contribution of equity capital. A company with a disproportionate debt to equity ratio is considered thinly capitalised and since interest payments are considered deductible expenses, which dividends are not, it provides a way to transfer untaxed profits within a group. This may be an incentive for MNEs to intentionally thinly capitalise companies by providing them with capital through loans instead of equity contributions.</p><p>The Swedish provision regulating transfer pricing between associated enterprises is the adjustment rule which expresses the arm’s length principle. The purpose of the rule is to adjust erroneous pricing between associated enterprises and it has four requisites that have to be fulfilled in order to be applicable. In the thesis it is concluded that nothing in the preambles to the adjustment rule points at the provision being applicable to thin capitalisation, on the contrary they indicate that it should have a narrow application. Through case law it has been established that the adjustment rule is not applicable to thin capitalisation situations in the sense that it can not be used to reclassify a loan into equity contribution. The provision is, in such a situation, only applicable to adjust interest rates that deviate from rates on the open market. The arm’s length principle expressed in article 9.1 of the OECD Model Tax Convention however seems to have a broader application than the adjustment rule. It is stated in the commentary to the article that it may be applied to prima facie loans, i.e. it can reclassify a loan into equity contribution if the surrounding circumstances points at it being the true nature of the transaction.</p><p>The conclusions drawn when comparing the reasoning of the Supreme Administrative Court with the OECD regarding the application of the arm’s length principle, is that the way the OECD reason regarding the true nature of a transaction is based on the same idea as the reasoning of the Swedish court. The Swedish Supreme Court however uses this type of reasoning when applying the substance over form principle and not when applying the adjustment rule. In other words, the difference is that the adjustment rule is not acknowledged the same scope of application as article 9.1.</p><p>Regarding the need to legislate against thin capitalisation in Sweden it is the authors’ opinion that since no examination of the problem has been performed, it is necessary to examine whether thin capitalisation in reality constitutes a problem for the Swedish revenue. Not until it is established if a problem exists should there be a discussion regarding the construction of such a provision.</p>

<p>När relaterade bolag belägna i olika länder säljer varor och tjänster sinsemellan kan det av olika anledningar ske till ett pris som avviker från det marknadsmässiga. Det kan bero på skatteplanering, men också på diverse andra omständigheter. För att kunna fastställa vilket som är rätt marknadspris och därigenom kunna ta ut rätt skatt är de flesta länder bundna av dubbelbeskattningsavtal, som vanligtvis är utformade efter OECD: s modellavtal. I artikel 9 i detta modellavtal finns regler om internprissättning och där definieras ”Armlängdsprinci-pen”, som säger att prissättningen ska följa de marknadsmässiga principerna. Vid en från marknadspris avvikande prissättning måste det konstateras om bolagen är relaterade eller ej, då reglerna för internprissättning endast gäller relaterade bolag. Enligt OECD: s modellav-tal kan bolag vara relaterade på grund av kontroll genom kapital, ledning eller annan kon-troll, och det är det sista kriteriet, begreppet ”annan kontroll”, som skapar störst förvirring. Varken OECD: s artikel 9 eller modellavtalet som sådant innehåller någon definition av be-greppet och det står inte heller att läsa hur de tre kriterierna förhåller sig till varandra. Vida-re saknas vägledning om vilka situationer som omfattas av artikeln.</p><p>Enligt Art 3(2) i modellavtalet ska odefinierade termer tolkas enligt nationell lagstiftning om inte omständigheterna kräver annorlunda. Art. 9 ges ofta en vidare definition än den given i OECD:s modellavtal, vilket kan resultera i en inkorrekt skattesituation. Eftersom dubbelbeskattningsavtalet endast rör justering av dubbelbeskattning, kan en justering inte äga rum genom användande av modellavtalet. Genom att utvidga beskattningsrätten, bryter länderna mot den gyllene regeln, vilken de flesta dubbelbeskattningsavtal bygger på, att ett dubbelbeskattningsavtal aldrig kan användas för att utvidga beskattningsrätten, endast in-skränka denna. Syftet med uppsatsen är att undersöka hur man kan ge kontrollbegreppet en riktig definition som överensstämmer med Art. 9. Eftersom tolkning via nationell lag kan ge oönskade resultat, kräver omständigheterna ett annorlunda tolkningssätt. Genom att ge kontrollbegreppet en autonom konventions tolkning som reflekterar syftet och bakgrunden till Art. 9, undviks problemet.</p> / <p>When associated enterprises situated in different countries sell goods and services between themselves, the transfer price may, because of different reasons, diverge from the market price. The divergence may be a consequence of tax planning, but it may also arise from other circumstances. To determine the right market price and thereby be able to make a correct taxation, most countries are committed to double taxation agreements, which are usually designed after the OECD Model Convention (hereafter OECD MC). Art. 9 of the convention provides for transfer pricing regulations and in this article the “arm’s length principle” is defined, stating that the pricing should be set according to the market price principles. When the transfer price diverges from the market price it must be established if the enterprises are associated or not, since the transfer pricing regulations only applies to associated enterprises. According to the OECD MC enterprises may be associated through capital, management or control, and it is the last notion, the notion of “control” that creates the greatest confusion. Neither in Art. 9 nor in the rest of the OECD MC, a definition of the notion exists, and it is nowhere stated how the criteria relate to each other. Further-more, guidance is missing describing in which situations the article is meant to be applica-ble.</p><p>According to Art. 3(2) OECD MC, undefined terms shall be interpreted according to domestic law, unless the context otherwise requires. Art. 9 is often given a wider definition than the one provided in the OECD MC when domestic interpretation is used, which may result in an incorrect tax situation. Since the double taxation agreement only deals with the adjustment of double taxation, an adjustment cannot be justified by the use of the OECD MC. By broadening the scope of the article, the countries break the golden rule upon which most double taxation agreements rely, that a double taxation agreement may never be used to expand the right of taxation, only restrict it. The purpose of the thesis is to investigate how to give the term control an appropriate definition in line with Art. 9. Since the use of domestic interpretation may give unwanted results, the context requires an alternative way of interpretation. By giving the notion of control an autonomous treaty interpretation that reflects the purpose and context of Art. 9, the problem is avoided.</p>

由於銀行業係間接金融市場中之主要資金仲介機構，在最完美之境界下，全行所吸收之存款，於扣除準備後均能貸放出去；亦即在資本適足性無虞之下，最理想的存放比率，應該是一減準備率。但由於銀行各地區分行的經濟背景及經營環境不同，資金在供需上產生顯著差異，營業單位的資金來源與用途很難達到完成平衡。因此必須藉由銀行內部資金轉撥計價使資金進行適當之配置，以避免發生資金缺口失控，產生流動性風險。 此外，由於銀行組織結構龐大，除了總行有各部、室及處外，在各地尚有分行，為使銀行整體目標能順利達成，必須透過分權制度之實施才能夠達成；亦即銀行決策首長以銀行整體目標為依歸，分別訂定總行各部、室、處，以及各地分行之個別目標後，透過總行各部、室、處，以及各地分行個別目標之達成，以促使銀行整體目標之實現；而為使各單位之個別目標均能貫徹執行以確保分權制度之機制能成功，個別目標之訂定及達成必須與績效之考評及獎賞相聯結。因此，銀行內部如何設計或採行一套允當之資金轉撥計價制度，既能指導全行資金作適當之配置，且能產生足夠之誘因以提高績效，促使各單位戮力以赴以達成銀行整體之目標，一直是銀行決策首長或資產負債管理單位亟欲探討之議題。而本研究之動機即企圖透過一種有系統之方式，針對銀行在不同之內部資金轉撥計價制度下，採用各種資金轉撥計價對各單位績效之影響作一通盤之探討。 關鍵字：銀行、內部資金、轉撥計價、績效 / For the reason that banking industry is the indirectly connected main funds’agent institutions within the financial market, under the most perfect circumstances, deposits absorbed by all of the banks after deducting the reserve can be loaned out. When there are opportune and sufficient capital adequacy, under no predictions, the most ideal loan/deposit ratio should be one minus reserved rate. However, since the economic backgrounds and management environments are different in banks of various regional branches producing obvious differences in supplies and demands of funds, it is hard to completely balance out sources and uses of funds in the operating units. Thus, banks’ internal funds transfer pricing must be disposed properly to avoid occurrence of uncontrollable fund gap producing floating risks. Furthermore, due to bank’s enormous organizational structure, other than headquarter, various sections, chambers and departments, there are branches everywhere. In order to smoothly achieve the overall goal of the bank, power distribution implementation must be penetrated. In another word, bank policy maker will be the basis for the bank’s overall goal. Separately, after the headquarter, various sections, chambers, departments and branches make their individual goals, through headquarter, various sections, chambers, departments and branches’achievement in their individual goals, will urge the realization of the bank’s overall goal. In order for each unit’s individual goal to be carried out and be executed to enable the success of the mechanism of power distribution system, the setting and accomplishment of each individual goal must be connected with the examination, critique and reward of the achievements. Thus, how the internal bank division design or select a set of funds transfer pricing system to instruct the appropriate disposition of the entire bank’s funds while producing adequate inducement to raise high achievement to stimulate each unit to try their best in achieving the bank’s overall goal, has been the bank policy maker or asset-liability management department’s ardent subject of discussion. The motive of this research is through a systematic method, aiming at banks under different internal funds transfer pricing system, to make an all-round discussion on the influences the selection of various funds transfer pricing system has on various unit achievements. Key words：Bank; Internal Fund; Transfer Pricing; Performance

The OECD Guidelines stipulates that a business restructuring resulting in shifted profit potential not automatically implies that compensation should be paid between the restructuring parties. This thesis examines when shifted profit potential should be remunerated from the perspective of the fictive Swedish distributor Enterprise A which is facing a business restructuring. The arm’s length principle does not require any remuneration for the mere shift of profit potential when applying the principle on business restructurings. Instead, the questions are whether there has been a transfer of something of value; or a termination or significant renegotiation of the current agreement. In the context of remuneration for shifted profit potential the questions can be rephrased to whether considerable assets and/or rights have been transferred which carry considerable profit potential that should be remunerated. And, whether the arm’s length principle requires remuneration to be paid by reference to the concept of “options realistically available”. Enterprise A’s shifted profit potential could be remunerated and thus have tax consequences if there are other options realistically available for the entity apart from entering into the business restructuring. Enterprise A’s bargain power would then have been greater and consequently the chances of being remunerated as well. Further, Enterprise A could be remunerated as a result of the shifted profit potential if the entity takes title to transferred marketing intangibles that can be identified and assessed valuable. The shifted profit potential should as well be remunerated and thus have tax consequences if the parties in Corporate Group C have included a compensation clause in their contract, and the clause can be assessed as at arm’s length when considering what independent parties would have agreed upon.

Disertacijoje „Sandorių tarp asocijuotų asmenų kainodaros modelis mokesčių mokėtojams ir mokesčių administratoriui“ nagrinėjama sandorių tarp asocijuotų asmenų kainodaros raida, reglamentavimas bei metodai. Disertacijoje atlikta užsienio šalių mokslininkų sandorių tarp asocijuotų asmenų kainodaros teorinių ir empirinių tyrimų analizė. Remiantis sandorių tarp asocijuotų asmenų kainodaros teisine baze bei užsienio šalių mokslininkų atliktų tyrimų rezultatais, sudaryta: sandorių tarp asocijuotų asmenų kainodaros nustatymo metodiką įmonėms, kurios sudaro kontroliuojamus sandorius, bei sandorių tarp asocijuotų asmenų kainodaros įvertinimo bei kontrolės metodiką mokesčių administratoriams. Iš šių dviejų metodikų buvo sudarytas sandorių tarp asocijuotų asmenų modelis bei pateikiami šio modelio taikymo pavyzdžiai. Disertacijoje pateikiama dažniausiai praktikoje pasitaikančių sandorių (prekių pardavimo, paslaugų teikimo, paskolų suteikimo, nematerialiojo turto perleidimo) kainodaros nustatymo pavyzdžiai Lietuvos įmonėms, o taip pat: disertacijoje buvo atliktas kontroliuojamų sandorių kainodaros reguliavimo efektyvumo Lietuvoje tyrimas. / The analysis of theoretical and empirical researches on transfer pricing was performed in the dissertation. This analysis enabled to distinguish the main transfer pricing areas and to define and supplement the transfer pricing concept. Based on the transfer pricing researches performed by foreign scientists and transfer pricing legislation the transfer pricing model was created and presented in the dissertation. This model can be applied by the tax payers who needs to determine the arm’s length transfer prices in practise (e.g. for sale of goods, provision of services, loans and other inter-company transactions) and for tax administrators who are controlling the compliance of transfer prices with the arm’s length principle in order to ensure that corporate profit tax is paid correctly to the state budget. The transfer pricing model can be used for various inter-company transactions (e.g. sales of goods, services, loans, etc.) for tax payers acting in various industries in countries where OECD guidelines are applied (including Lithuania). Moreover, evaluating the effectiveness of transfer pricing regulation in Lithuania the research was performed. Performing this research the author calculated and compared the taxable income to be received applying the arm’s length principle and the alternative principle – the formulary apportionment. Such research was performed the first time in Lithuania.

The analysis of theoretical and empirical researches on transfer pricing was performed in the dissertation. This analysis enabled to distinguish the main transfer pricing areas and to define and supplement the transfer pricing concept. Based on the transfer pricing researches performed by foreign scientists and transfer pricing legislation the transfer pricing model was created and presented in the dissertation. This model can be applied by the tax payers who needs to determine the arm’s length transfer prices in practise (e.g. for sale of goods, provision of services, loans and other inter-company transactions) and for tax administrators who are controlling the compliance of transfer prices with the arm’s length principle in order to ensure that corporate profit tax is paid correctly to the state budget. The transfer pricing model can be used for various inter-company transactions (e.g. sales of goods, services, loans, etc.) for tax payers acting in various industries in countries where OECD guidelines are applied (including Lithuania). Moreover, evaluating the effectiveness of transfer pricing regulation in Lithuania the research was performed. Performing this research the author calculated and compared the taxable income to be received applying the arm’s length principle and the alternative principle – the formulary apportionment. Such research was performed the first time in Lithuania. / Disertacijoje „Sandorių tarp asocijuotų asmenų kainodaros modelis mokesčių mokėtojams ir mokesčių administratoriui“ nagrinėjama sandorių tarp asocijuotų asmenų kainodaros raida, reglamentavimas bei metodai. Disertacijoje atlikta užsienio šalių mokslininkų sandorių tarp asocijuotų asmenų kainodaros teorinių ir empirinių tyrimų analizė. Remiantis sandorių tarp asocijuotų asmenų kainodaros teisine baze bei užsienio šalių mokslininkų atliktų tyrimų rezultatais, sudaryta: sandorių tarp asocijuotų asmenų kainodaros nustatymo metodiką įmonėms, kurios sudaro kontroliuojamus sandorius, bei sandorių tarp asocijuotų asmenų kainodaros įvertinimo bei kontrolės metodiką mokesčių administratoriams. Iš šių dviejų metodikų buvo sudarytas sandorių tarp asocijuotų asmenų modelis bei pateikiami šio modelio taikymo pavyzdžiai. Disertacijoje pateikiama dažniausiai praktikoje pasitaikančių sandorių (prekių pardavimo, paslaugų teikimo, paskolų suteikimo, nematerialiojo turto perleidimo) kainodaros nustatymo pavyzdžiai Lietuvos įmonėms, o taip pat: disertacijoje buvo atliktas kontroliuojamų sandorių kainodaros reguliavimo efektyvumo Lietuvoje tyrimas.

This paper will discuss the obstacles governments of developing countries face in regulating related party transactions in this rapidly globalizing world. The first section of this paper will focus on foreign direct investment, its benefits, and the tax incentives instituted by developing countries to attract the capital of multinational corporations. Next, this paper will examine the major obstacles to growth a developing country must combat: shadow economies and corruption. These two enemies of growth hurt a developing country’s ability to attract foreign direct investment, to develop its rule of law and tax administration, and to efficiently allocate its resources with the goal of developing a stable economy. Finally, I will explain the difficulties developing countries must overcome to regulate firm transfer pricing under the current global standard.

The aim of this diploma thesis was to outline the issue of transfer pricing, especially under the conditions of the Czech Republic and to elaborate the documentation for specific company carrying out relationships with related parties. The individual methods of assessment of these prices were introduced in the theoretical component. The possible obstacles connected to its usage were described and most important information needed for transfer pricing documentation were summarized. The practical component includes functional analysis of specific company. Furthermore, all the transactions from the year 2015 amongst related parties were identified and described in detail. In relation to the main production activity the method of net range was used for transfer price verification. The Albertina database was used for elaboration of comparative analysis. To verify the profit margin applied by the company for production, it was used the multi-criterion and gradual weight schedule with subsequent application of point method. This thesis revealed defects that have been presented to the representatives of the company's management. It was stated that it is necessary to perform the revision of profit margin because of profit misinterpretation and lower tax payment of corporate income tax. It was clearly demonstrated that the elaboration of transfer pricing documentation is not a useless administrative burden. On the contrary, it is an important base for mapping and analysing inter-company transactions. Correctly elaborated documentation can be used also a negotiation argument with related parties that are usually in a stronger negotiating position or in dealing with financial administration regarding tax inspection.