Transparency and Transfer Prices

Ortmann and Simons investigate how increased transparency in transfer pricing influences (i) corporate reporting decisions, (ii) tax authority incentives, and (iii) economic outcomes such as tax revenue and the allocation of investments among countries. Using a theoretical approach, they contrast two competing transparency regimes. They study a regime mandating a high level of transparency (country-by-country reporting) under which tax authorities are able to monitor transfer prices. Furthermore, they analyze allocations of taxable income relying on a formula-based distribution procedure. While such procedure prohibits conventional accounting-based profit shifting through transfer pricing, it might cause real effects.

    Beteiligte Institutionen

    Die Hauptstandorte vom TRR 266 sind die Universität Paderborn, die HU Berlin und die Universität Mannheim. Alle drei Standorte sind seit vielen Jahren Zentren für Rechnungswesen- und Steuerforschung. Hinzu kommen Wissenschaftler der LMU München, der Frankfurt School of Finance and Management, der WHU – Otto Beisheim School of Management, der European School of Management and Technology in Berlin und der Goethe-Universität Frankfurt, die die gleiche Forschungsagenda verfolgen.