Revenue distribution in multinational firms through transfer pricing

The objective of this paper is to analyze the procedures used by multinational enterprises to distribute the revenue generated by their subsidiaries abroad. Also, the paper intends to answer the question how multinational enterprises (MNES) allocate taxes paid on this income among the fiscal jurisdi...

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Detalles Bibliográficos
Autores: José G. Vargas-Hernández, Deyanira Bernal Domínguez, Rubén Miranda López
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2013
País:México
Institución:Universidad de Guadalajara
Repositorio:Redalyc-UDG
OAI Identifier:oai:redalyc.org:195636962004
Acceso en línea:https://www.redalyc.org/articulo.oa?id=195636962004
Access Level:acceso abierto
Palabra clave:Economía y Finanzas
income shifts
transfer pricing
Multinational firms
Descripción
Sumario:The objective of this paper is to analyze the procedures used by multinational enterprises to distribute the revenue generated by their subsidiaries abroad. Also, the paper intends to answer the question how multinational enterprises (MNES) allocate taxes paid on this income among the fiscal jurisdictions in which they operate. In this study, the analytic research method was applied, in the literature review, in order to determine how income-shifting works as a fiscal strategy applied by MNES. It is concluded that mnes use organizational strategies to take advantage of the comparative advantages from the different countries in which they operate, and, as a result, an intercompany trade takes place.