Detection of Possible Tax-Evasive Transfer Pricing in Multinational Enterprises

摘要

In this paper we analyze possible source of tax evasion in the multinational entity (hereinafter u201cMNEu201d). We show that the tax obligation of the whole MNE depends on the ownership structure of companies, which form MNE and that the structure could be described by matrix form. Therefore the basic tax optimization tasks of MNE via transfer pricing can be understood as linear programming problems. In addition we propose a way to identify possible tax evasion realized via transfer pricing in MNE.