Detail The Problems of Transfer Pricing   Oleh:  Carter, William K. ; Maloney, David M. ; Vranken, M.H. Van Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 186 no. 1 (1998), page 37-41. Topik: PRICING; problems; transfer pricing Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.7 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel Its hard enough for a company to do business when its situated in only one state, but consider the complexities when it adds facilities in another stateor, even worse, when it goes international. In addition to having to prepare multiple tax filings, a business with far - flung facilities suddenly must contend with another complication : transfer pricingin which local tax authorities view a company division in one political venue as a customer and / or a supplier of a related division in another political venue. The upshot is that the cost of any goods or services the two units exchange must be determined when the company calculates each units tax liability. This article examines the processincluding its tax, accounting and corporate profit implications. If you think transfer pricing affects only big companies, think again. Size is immaterial. The only condition that triggers transfer pricing is the existence of multiple facilities in more than one taxing jurisdiction. For example, a company with 45 employees in five locations in two states would activate transfer pricing concerns if one of its offices provides data processing, payroll or other services to the others. Similar situations arise in manufacturing, when one division ships parts or unfinished products for final assembly at another location in a different jurisdiction. A key element is a buyer - seller relationship between units of a single company. Although owners and managers may not think of one location as selling services or parts to another unit, the various taxing authorities whether state or nationalmay impose that view. Under such circumstances, a company has to determine the monetary value of the goods or services and treat that amount as sales revenue of the selling unit and as a cost of the buying unit. Companies establish transfer prices in a variety of ways. Two of the most popular are by estimating competitive market prices and by adding a markup to costs. To illustrate, look at Example, Inc., a producer of telephones and related equipment at its Alpha division, which is situated in an urban U. S. community with high taxes on property and income. Competitive pressures combined with those high taxes prompted Alpha to look for lower tax jurisdictions for expansion. An opportunity arose when a supplier offered to sell its entire operation. The supplier has two facilities : one, Beta, is in a state with no income tax; and the other, Gamma, is in Canada, near the U. S. border. Beta produces a variety of molded plastic parts, including the hard -plastic exteriors or shells of telephones, using raw plastic purchased in bulk. Excluding shells, much of Betas output is shipped to Gamma, where it is combined with purchased parts to create telephone subassemblies. As a result of the planned acquisition, Example will produce shells at Beta for sale to unaffiliated or outside entities and also will produce shells for its own use in final assembly at Alpha and for subassemblies at Gamma ; some of these sub assemblies will be shipped from Gamma to Alpha for final assembly. In addition, Alpha will provide marketing and administrative services for all three locations. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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