Senin, 10 Oktober 2011

INTERNATIONAL TRANSFER PRICING:
A SURVEY OF PRACTICES, TAX-AUDIT, AND STRATEGIES
FOR MANAGING TAX UNCERTAINTY BY FOREIGN OWNED
SUBSIDIARIES IN NEW ZEALAND

Jian Li Peter
Oyelere
and Fawzi
Laswad

May 2004




Centre of Accounting Education and Research
PO Box 84
Lincoln University
CANTERBURY
Telephone No: (64) (3) 325 3627 Fax No: (64) (3) 325 3847 E-mail: lij3@lincoln.ac.nz
ISSN 1175-9127 ISBN 1-877325-01-5

Abstract
International transfer pricing (ITP) tax guidelines and regulations have been recently introduced in New Zealand. These guidelines allow a number of transfer pricing methods. This paper examines international transfer pricing practices of New Zealand based multinational companies, the likelihood that these companies would experience a tax-audit by the taxation authority, and the mechanisms these companies use to minimize tax uncertainty. The key findings include that tangible goods is the most common intercompany transfers; cost plus method is the most common transfer pricing method; tax audits by Inland Revenue Department (IRD) are positively associated with company size; the greater the volume of its intercompany transfers, the more likely that a company would have an Advance Pricing Agreement (APA) with the IRD or would consider an APA in the future.


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