An Analysis of the Factors that Affect Collective Construction Land Transfer Price: A Case Study of Yichang City

The transfer of the rural collective construction land is increasingly accelerating,and the factors affecting transfer price are manifold. In this paper,the research area is Yichang,and we establish hedonic price model to explore and analyze the factors which affect the collective construction land transfer price. The simulation results show that in geographical factors,the higher degree of prosperity,road accessibility and soundness of infrastructure will result in higher collective construction land transfer price; in economic factors,the higher farmers' per capita net income and added value of the village's tertiary industry will lead to higher collective construction land transfer price; in ownership factors,the integrity of usufruct,disposition and possession has increasingly significant impact on collective construction land transfer price. In the process of establishing rural collective construction land circulation market,the government should gradually improve conditions of collective construction land; strengthen the construction of the rural economy,improve the economic attribute of the collective construction land; establish and improve China's rural collective construction land-related laws and regulations,make the rural collective construction land use rights clear,and give the whole rights of occupation,use,earning and disposition.

Analysis of Intermediate Product Price and Social Welfare in the Vertical Merger of Enterprises

According to the different products that two upper enterprises produce, this paper analyzes the transfer pricing of intermediate product and the effect of social welfare of vertical merger under imperfect competition market. The conclusions are: the transfer pricing of intermediate product is equal to marginal cost; the perfect outputs that upper enterprises sell to the market before and after the vertical merger of enterprises are the same; the product price in the integrated enterprises may be higher, lower or equal to the price in non-integrated enterprises.

Minority Protection in Proceedings for the Settlement of Disputes Between Shareholders

“A limited company is more than a mere judicial entity, with a personality in law of its own： Behind it, or amongst it, there are individuals, with rights, expectations and obligations inter se”. The competitive attitude of the member states of the EU （European Union）, to become the most attractive for companies results in law reforms aiming at more flexible conflict between shareholders. Besides, the economic objective of avoiding a company＇s dissolution, the English, Dutch, and Belgian exit proceedings for the settlement of disputes between shareholders set up a social objective： protecting the interests of the minority shareholder of a private limited company. The paper consists of four chapters. The introduction lays out the necessity of buy-outs for shareholders of a private limited company. The first chapter describes the different facts justifying the buy-out of a shareholder on the basis of serious grounds. The second chapter presents the findings of a comparative research of the valuation of the shares transferred in an English, Dutch, and Belgian procedure. Finally, the conclusion summarises in which way the English, Dutch, and Belgian legal system protect the interests of the minority shareholder of a private limited company.

Empirical Examination of Market Reaction to Transfer Pricing Taxation Announcement in Press： A Japanese Perspective

The Japanese Taxation Agency （JTA） introduced transfer pricing taxation （TPT） in order to suppress the outflow of profits and therefore taxes of Japanese companies, which are expanding overseas. There have been many press reports regarding the application of TPT, and so there is much public attention on this issue. TPT is applied to unnatural transfer prices （TP）. If TPT is applied to a multinational company （MNC）, the company will need to bear enormous documentation costs in its calculation of the ratable price. In addition, in the last few years, the target of TPT is shifting to the overseas transfer of intangible assets, such as trademarks, royalties, patents, and charges income. As a result, companies have become more careful about TPT and investors tend to pay attention to companies＇ TPT strategy. With regard to this point, this paper examines how the market evaluates news regarding TP by investigating the market reaction to an initial press report mentioning that a firm was involved in a TP manipulation and may be guilty of tax underpayment. We examine these events both because press reports are currently under intense scrutiny and because there has been very little research on firms that engage in tax sheltering （see, e.g., Graham ＆ Tucker, 2006; Hanlon ＆ Slemrod, 2009）. Some view the fact that not all firms engage in tax sheltering as surprising because of the widespread view that shelters, at least in the 1990s, in expectation, offered a positive net present value position. The potential negative public relations effect is often cited as one reason for this ＂under-sheltering＂ phenomenon （Bankman, 2004）. On the event study analysis, we find that the Japanese capital market has shown a statistically significant negative reaction to the press reports. This result is due to a strong distrust of corporate activity regarding TP strategies. Moreover, in order to clarify the reason why the market responds to reports of TPT being applied, we compute the cumulative abnormal returns （CARs） around the date of the press report and conduct two-stage least-squares estimation to examine where this result regarding the market reaction comes from. Our results indicate that the variables for intangible assets and effective tax rate and the variables which represent the extent of corporate governance （CG） are statistically significant with respect to these reactions.

Compliance of Documentation Transfer Pricing Requirements in Foreign Direct Investment Enterprises in Vietnam

The increase of inter-boundary transactions brings a number of benefits for enterprises. However, even when benefits of transfer pricing are evident, multinational organizations still face legal challenges, including performing parts of transactions in another jurisdiction and motives of tax officials in investigating transfer pricing. This is especially true when countries do not want to lose benefits from tax collection. Therefore, many countries and organizations such as the Organization for Economic Cooperation and Development （OECD）, Pacific Association of Tax Administrators （PATA）, the European Union （EU）, and Vietnam have introduced requirements for transfer pricing documentation to prevent transfer pricing manipulation and maintain benefits from taxes. The aim of this research was to assess the compliance of those requirements of foreign direct investment （FDI） enterprises in Vietnam. This article which is a summary of our research includes the following sections： （1） OECD guidelines of transfer pricing documentation; （2） Vietnam regulations of transfer pricing documentation; （3） results of the research; and （4） discussion and conclusion.

Modus operandi of transnational transfer pricing for window dressing

A goal of transfer pricing may be to maximize after tax revenue by setting transfer prices that reduce the total tax paid. ＂Transfer pricing＂ is the pricing of products or services provided by one division to other division of the same corporate entity. Most of the corporate entities are using the method of ＂Window dressing＂, which is a technique used in preparation of financial statements of corporate entities. A transnational corporation is any enterprise that undertakes Foreign Direct Investment （FDI）, owns or controls income gathering assets in more than one country, produces goods or services outsides its country of origin, or engages in international production. Profitability of the transnational corporate entities is being manipulated by the technique of transfer pricing. Abuse of transfer prices is a key tool used by the corporate entities to think that they have virtually no profit; hence, they shouldn＇t pay any taxes. India needs to realize the fundamental need for co-operation among tax administrations in order to remove the obstacles that international double taxation presents to the free movement of goods, services and capital between various countries. In this context, one needs to consider that transactions among associated enterprises may take place under different conditions from those taking place among independent enterprises, while enforcing the act of transfer price mechanism. This paper focuses on transfer pricing and its implications in transnational transactions.

Agricultural Land Contract and Management Rights:Transferring Price and Countermeasures in Typical Agricultural Areas of China

Henan is a large agricultural province and one of China’s major grain-producing areas. Agricultural land transfer and large-scale operations will have a profound impact on regional economic development and food security. This is a case study taken in Xiwan village in Qinyang city, Henan. This paper builds a transferring pricing model using land use rights assessment and characteristic correction of land contract and management rights. Results show that the transferring price of land contract and management rights should include the economic price, social price and corrected price. The use of a price model should focus on the distinction of theory and practical application. If there is no change in agricultural project,the actual transferring price should be the sum of the economic price and social security price. If there is a change in agricultural projects,such as cropland into cash crops,the actual transferring price should be the sum of the economic price, social price and corrected price. Because of the complexity of income distribution following the transfer, transferring gains should follow a rational distribution in the outflow side, inflow side, managers and land owner. The government should establish reasonable and orderly contracted management of land circulation transferring and use this to build a land transferring price system.

Transfer Pricing Regulations of Armenia:Issues with Some of the Current Provisions and Their Possible Solutions

Armenian transfer pricing(TP)regulations are still in the starting period of their application,as the provisions for conducting TP administration have been put into force only since 13 April 2022.Prior to that,the TP legislation was incomplete due to lack of provisions for effective tax administration.When the legislative amendments took effect,the TP became a separate type of tax audit with its specific features on procedure.Notwithstanding the fact that amendments solved many legislative issues,there were still many problems that emerged while applying the provisions in practice and hence needed to be tackled by further legislative amendments.This article explores some of the current major problems that the Armenian TP regulations face and the possible solutions that might be implemented in the near future.

Recent and Emerging Trends in Raising Tax Certainty on Cross-Border Transactions

Raising tax certainty constitutes a fundamental for investment de-cisions by multinational enterprises(MNEs)while it is highly valuable also for tax administrations.Therefore,it has been considered as one of the core areas by the BRITACOM parties.Over the past few years,considerable attention has been devoted to improving tax certainty while new challenges arise.This article analyses some of the recent advances and emerging initiatives in terms of raising tax certaintywww.britacom.org mechanisms for cross-border transactions in areas such as dispute prevention and resolution,transfer pricing,General Anti-Avoidance Rules(GAARs)and the taxation of digital economy.

Transfer Pricing,Taxing Rights over Cross-Border Sales Income and the OECD Two-Pillar Response

The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit shifting(BEPS).At the same time,countries became increasingly unhappy about international tax rules that left them unable to impose income taxes on companies earning profits by selling to customers inside their country without establishing a taxable presence there.The frustration led to unilateral responses that prompted the OECD to develop proposals to address this problem as well.The OECD’s proposals to reduce profit shifting and enhance taxing rights of sales destination countries evolved into what are now known as Pillar One and Pillar Two international tax reforms.This paper provides an overview of the operation of each of the Pillars and notes the limitations that prevent them from addressing the underlying causes of profit shifting and providing full taxing rights to sales destination jurisdictions.

Transfer Pricing Aspects of Pillar One and Pillar Two

This article showcases the potential interplay between transfer pricing rules and the OECD’s Pillar One and Pillar Two proposals.Given their simultaneous application,conflicts between these sets of rules may arise.The article also emphasizes the importance of careful consideration before implementation of these rules,including potential adjustments to domestic laws,and the need to prevent double taxation and less-than-single taxation risks through enhanced cooperation and clear communication.

Dutch Transfer Pricing Court Case on Business Restructuring:Preventing Transfer Pricing Disputes by Getting Certainty in Advance

This article summarizes a Dutch court case regarding a business restructuring within a multinational enterprise,where the valuation of the transferred business activities was not confirmed by the tax authorities in advance.As a result of the lack of certainty beforehand,the taxpayer experienced a significant tax correction.According to the author’s perspective,this situation could have been prevented by seeking certainty in advance.

International Transfer Pricing——A Generalziation Based on Income Tax and Tariff Effects

In order to successfully compete in the global market,many multinationalcompanies use control and evaluation systems for monitoring the performanceof their subsidiaries abroad,which are faced with complexities of political,social,cultural,and legal differences,tax regulations,import and export re-strictions,foreign exchange regulations,control on the transfer of f unds,and various other restrictions imposed by host countries to protect their nation-al interests.The challenge for multinationals is to design a transfer strategywhich appropriately rewards the management of the subsidiaries overseas andalso copes with the various poli tical,legal,cultural,and economic restric-tions of the host countries.

China’s Transfer Pricing Measures

Earlier this year, the State Administrationof Taxation promulgated the much-antic-ipated transfer pricing measures detailingthe administrative rules for all special taxadjustments. These special tax adjustments,including cost sharing, thin capitalization,

Transfer Pricing in BEPS Project and China's Response

A major concern on base erosion and profit shifting(BEPS)is transfer pricing,which is discussed in BEPS Action Items 8-10 and 13.Actions 8-10 contain revised guidance,which ensures that transfer pricing rules secure outcomes that better align operational profits with the economic activities that generate them,as well as guidance on transactions involving cross-border commodity transactions and on low value-adding intra-group services.Action 13 contains a three-tiered standardized approach to transfer pricing documentation,including a minimum standard on country-by-country reports(CbCRs).However,the approach of Actions 8-10 still focuses on the restoration of the dysfunctional rules built on the arm's length principle,which is rooted in the principle of separate independent entity.The threshold of Action 13 excludes many large multinational enterprises(MNEs)from the CbCR requirement and deprives developing countries access to the information of MNEs below the threshold.Chapter 6 of the Chinese Corporate Income Tax Law,under the title"Special Tax Adjustments,"provided the legal foundations of transfer pricing and transfer pricing documentation in China.To effectively implement the BEPS package in China and to comprehensively update the existing Circular 2,the State Taxation Administration(STA)released a Discussion Draft of a Circular on Implementation Measures for Special Tax Adjustments in September 2015,ranging from Action 3(controlled foreign company rules),Action 8-10(aligning transfer pricing outcomes with value creation)to Action 13(transfer pricing documentation and country-by-country reporting)in details.Right now,a series of patches,such as the STA Bulletins 45,42,64,and 6,have been made to replace a substantial part of Circular 2.

New Technologies and Transfer Pricing in the BRI Jurisdictions

This paper explores the linkage between emerging new technologies and transfer pricing,and the mechanisms available to minimise and resolve disputes in this area.It explores the way that these technologies can help achieve a better application of the Arm’s Length Principle(ALP)which remains the bedrock for transfer pricing around the world.It also identifies the way that both MNEs and Tax Administrations can use these technologies to get access to more comparable information and to achieve greater consistency in the allocation on the basis of the ALP.Finally some new ways of achieving more effective cross-border resolution mechanisms in the BRI jurisdictions are explored.

Transfer Pricing Regulations of Armenia

The current transfer pricing(TP)legislation of Armenia was elaborated back in 2014-2015 and the Tax Code with a special TP chapter in it(Chapter 73)was adopted in 2016.The provisions of 2016 Tax Code came into force in 2018,but the implementation of the TP regulations came into force on 1 January 2020.Currently,the legal framework of TP regulations is not complete for conducting tax administration.In this regard,in early 2021,a project on amending TP regulations was proposed,which has been already effective since 13 April 2022.This paper will discuss the five biggest issues of the current TP regulations and the proposed amendments and additions to the TP rules as solutions to those issues,which would help to effectively conduct tax administration.

Implications of the Interaction of Trade and Tax Rules(Part One)

Trade,investment and tax treaties are concluded for different reasons and with different objectives.The international trade and tax systems are overseen by different global organizations.The overlaps and inconsistencies between these agreements could be exploited by investors to gain unintended advantages.Therefore,developing countries must ensure that there is greater cooperation and exchange of information in relation to trade,investment and tax policy.The exchange of information between tax administrations is important in the context of the Belt and Road Initiative(BRI),where the tax administration in each jurisdiction needs to know more about the cross-border transactions of multinationals operating in its territory.The most effective way for developing countries to improve the exchange of information is to sign multilateral agreements,in particular the Convention on Mutual Assistance in Tax Matters.The customs and transfer pricing functions within a jurisdiction should collaborate and exchange information to ensure that the pricing of import transactions is consistent across different taxes.Both functions could carry out risk-based compliance audits that would involve comparison of transfer pricing and customs documentation.In the context of coordination between customs and direct tax functions,the comparison of customs and transfer pricing documentation can be established on a routine basis.Closer coordination of transfer pricing and customs would also help taxpayers reduce compliance costs in relation to cross-border transactions.In view of the compliance costs involved in putting together transfer pricing documentation,it would help taxpayers if much of the same documentation could also be used for the purposes of customs valuation.