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Transfer Prices: An Economic And Fiscal Approach

Author

Listed:
  • LUCA Mihaela Paraschiva

    (Lucian Blaga University of Sibiu, Romania)

  • Ileana TACHE

    (Transilvania University of Brasov, Romania)

Abstract

This paper presents the transfer prices in the context of an enhanced and intensified control of the tax authorities, analyzing them both from an economic and fiscal perspective. Theoretically speaking, the economic approach is different from the fiscal one. There are arguments sustaining the disconnection between the economic and fiscal aspects of the transfer prices. We assist at a stronger regulation associated to the fiscal point of view and at an improvement of the resulted finance taxation. Realizing a detailed and deep documentation of the existing scientific literature in this field, processing and interpreting statistical data and using a comparative data analysis, this study arrives at the conclusion that transfer prices should be considered by taking into account all the economic, taxation and custom implications. Only such a complete and integrated approach may offer safety to companies when they are confronted with custom or fiscal inspections.

Suggested Citation

  • LUCA Mihaela Paraschiva & Ileana TACHE, 2021. "Transfer Prices: An Economic And Fiscal Approach," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 73(3), pages 132-150, October.
    • Handle: RePEc:blg:reveco:v:73:y:2021:i:3:p:132-150
    as

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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/73306luca&tache.pdf
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    References listed on IDEAS

    as
    1. Jack Hirshleifer, 1956. "On the Economics of Transfer Pricing," The Journal of Business, University of Chicago Press, vol. 29, pages 172-172.
    2. Robert F. Göx & Jens Robert Schöndube, 2004. "Strategic Transfer Pricing With Risk-Averse Agents," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 56(2), pages 98-118, April.
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    Keywords

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    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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