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Transfer Pricing Loopholes Likely to be Closed Soon

Among tax-avoidance methods, transfer pricing is the most controversial. While it is never acceptable to the Revenue Department, it has become pervasive and more complicated. The most common example deals with two related entities — one profitable and one unprofitable — entering into a transaction either at an exaggeratedly high or unusually low price. The profit-making company sells goods or services to the loss-making company at a price below what it normally charges non-related entities, while the latter will on-sell the products at a much higher price and book the profits. Alternatively, the loss-making company could sell to the profit-making company at a high price, allowing the latter to increase its tax cost base.

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Additional Info

Field Value
Document type Analysis, discussion papers, and blogs
Language of document
  • English
Short title (alternative/varying form of title) Transfer Pricing Loopholes Likely to be Closed Soon
Topics Taxation
Geographic area (spatial range)
  • Thailand
Copyright Unclear copyright
Access and use constraints

© 2018 No known access and use constraints.

Version / Edition 2015
License CC-BY-3.0-IGO


Co-author (coorporate) Rachanee Prasongprasit and Prof Piphob Veraphong, LawAlliance Limited
Publisher The Legal 500
Publication date 2015
Keywords V4MF,FLEGT,Transfer Pricing,Tax treaty
Date uploaded July 17, 2018, 13:50 (UTC)
Date modified October 22, 2018, 04:14 (UTC)