Transfer Pricing Of Multinational Companies As A Business Crime And Their Impact On State Revenue In The Tax Sector

摘要

Transnational companies are strategic economic actors in economic globalization that play a major role in world economic development. However, the existence of transnational companies also has a negative impact through the practice of transfer pricing, namely the act of allocating profits from corporate entities to other state company entities, within the group of companies which results in reduced state revenue in the tax sector. In this regard, the purpose of this article is to formulate the factors that cause multinational companies to transfer pricing and how legal protection of the country is due to the practice of transfer pricing. The conclusion of this article is that the factors causing transfer pricing are to shift income or profits from high tax jurisdictions to low tax jurisdictions so as to minimize tax payments which have a large impact on reducing state revenue. In order to protect the practice of transfer pricing, the government made regulations against tax avoidance, carried out an Advance Pricing Agreement (APA), and worked with the tax authorities of other countries. In order to make effective the transfer pricing provisions, it is necessary to be supported by Human Resources (HR) who have the ability and understanding in the field of transfer pricing.