Abstract
Transfer pricing has become one of the main issues in the Malaysian tax perspectives since the pioneer legal case has proven to attract more scrutiny and supervision of the related authorities. In 2012, the comprehensive act by the Inland Revenue board to replace the Transfer Pricing Guidelines 2007is believed to curb any manipulation and malpractice among related party transactions. This study aims to examine the relationships between three risk indicators of transfer pricing and the probability of transfer mispricing practices among Public Listed Companies (PLCs) in Malaysia. Using a micro backward-looking approach for seventy companies consisting of 350 firm-years provides evidence that the number of tax haven subsidiaries and
gross profit margin affected the extent of Effective Tax Rate yielded. These findings show that transfer pricing practices among PLCs may amount to a serious tax evasion scheme if the practices are not properly controlled
and monitored by the authorities.
Metadata
Item Type: | Article |
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Creators: | Creators Email / ID Num. Abdul Hamid, Adzhamsyah UNSPECIFIED Arshad, Roshayani UNSPECIFIED Mohd Pauzi, Nur Farahah UNSPECIFIED |
Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management |
Divisions: | Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Accountancy |
Journal or Publication Title: | Management & Accounting Review |
UiTM Journal Collections: | UiTM Journal > Management & Accounting Review (MAR) |
ISSN: | 1675-4077 |
Volume: | 15 |
Number: | 1 |
Page Range: | pp. 1-22 |
Keywords: | Transfer pricing, tax evasion, tax planning, related party transactions |
Date: | June 2015 |
URI: | https://ir.uitm.edu.my/id/eprint/30643 |
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