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The impact of transfer pricing laws on import mis-pricing – Evidence from Denmark

Author

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  • Knoll, Bodo
  • Kruse-Becher, Sanne
  • Riedel, Nadine

Abstract

Many countries have recently introduced transfer pricing regulations to constrain multinational profit shifting from high-tax to lower-tax affiliates through strategic mis-pricing of intra-firm trade. We rely on rich administrative firm-level trade data for Denmark to show that tighter transfer pricing rules effectively reduce tax-motivated trade mis-pricing.

Suggested Citation

  • Knoll, Bodo & Kruse-Becher, Sanne & Riedel, Nadine, 2023. "The impact of transfer pricing laws on import mis-pricing – Evidence from Denmark," Economics Letters, Elsevier, vol. 233(C).
    • Handle: RePEc:eee:ecolet:v:233:y:2023:i:c:s0165176523003865
    DOI: 10.1016/j.econlet.2023.111361
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    References listed on IDEAS

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    Keywords

    Transfer pricing; Anti-shifting provisions;

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