The Application Of Economic Value Added To Transfer Pricing

Along with the economical globalization advancement unceasing deepening, the technique of avoiding taxes also hide day by day and the pattern renovates unceasingly, corresponding the work of instead avoiding taxes also need to carry on the innovation to perform unceasingly. As for transfer pricing to avoid taxes is used most,the kind behavior of avoiding taxes often don't have the real and direct evidence, both the tax affairs institution and taxpayer always make a big difficulty in the respect of analysis and the cognizance to the objective economic environment, so the resistance degree is exceptionally intense.Therefore this article innovatively proposed making the problem of instead avoiding taxes put in the angle of the management science of the achievement appraisal theory EVA, and attemptted to give the different annotation of the problem of avoiding taxes of transfer pricing.This article chapter arrangement is as follows:First chapter Introductory remarks, mainly introduce the article research background, the selected topic significance, the research technique, the article frame, the innovation and the insufficiency.Second chapter Literature summarized, elaborated domestic and foreign studied EVA and the transfer pricing article, carried on the simple evaluation to the correlation research results.Third chapter Analyzing the transfer pricing elementary theory and the difficult position which it faces, emphaticly analyzed the transfer pricing basic concept, the essential method, the international and domestic method which was used , the difficult of the work,finally through the EVA achievement appraisal to look the enterprise and the affiliated enterprise occurring the transaction whether has harmed enterprise's benefit standing in the shareholder angle.Fourth chapter Introducing EVA the basic principle and discussing the application of EVA in the transfer pricing , emphaticly analyzed the EVA basic concept, the correlation theories ponder; the several good and bad points odf the method and the EVA computational method.Fifth chapter Making a basic discussion from four different simplification cases to the EVA application.The three case discuss how to judge through EVA whether the tax was in the "normal" sector and how to adjust both tax and business to side both in the "normal" standard to be possible to be approved. In the final case, introducing EVA in detail in the advanced price agreement.Sixth chapter Conclusions. The exposition of the transfer pricing profiting from international advanced achievement appraisal system EVA which is helpful to strengthen the management of our country of transfer pricing, maintains the national tax revenue rights and interests, establishes a harmonious tax relation between affairs institution and the taxpayer.