The anti profit shifting and transfer pricing measures a comparative study

Abstract

newline The research undertaken by the researcher has been on transfer pricing which has been one of the most fascinating and thought provoking fields in the area of International Taxation Laws. Various means are adopted by multi-national companies globally to reduce the taxable profits- to take an example - subsidiaries of multinational firms located in high-tax countries tend to borrow from group entities located in low-tax countries, which enables multinationals to save taxes since the taxes avoided through the interest deduction at the high-tax location exceed the taxes on interest income at the low-tax location. newline The main aim of the research undertaken was to elucidate the basic features of transfer pricing and ant-profit-shifting measures (put in place to stop such aforementioned practices to reduce the taxable profits) used by India, with special reference to the methods and comparables, and compare their application with the set of Countries under comparison-US, UK, South Korea and Mauritius.