Research On The Tax Risk Prevention Strategy Of Transfer Pricing In Changlong Corporation

The steady progress of the process of economic globalization provides a good opportunity for the growth of transnational corporations,but at the same time,in the multinational corporations,the group companies begin to implement the transfer pricing strategy for the purpose of profit adjustment or profit transfer.Transfer pricing refers to the internal transaction prices of transnational groups arising from the sales of products,labor services,technology transfer and financial lending,etc.these prices usually do not reflect the normal supply and demand of the market,and also different from the market price according to the principle of independent competition.From the perspective of interest considerations,the large multinational group companies often through the transfer pricing policy in the group within the affiliated transactions,this is the legitimate rights in the business.However,when some transactions occurred in the enterprise because of the transfer pricing strategy is not determined by the state administration of taxation according to the relevant standards determined by the independent transaction,the national tax benefits of erosion,then will cause the attention of the competent tax authorities and investigation,so that the interests of enterprises will be lost to a certain extent,and face all kinds of tax risk caused by the transfer pricing of related transactions.Through reading a lot of relevant literature at home and abroad,this paper expounds the research background,significance and relevant theoretical basis.Based on the business financial data of Changlong corporation for 2006,firstly,the affiliated party of Changlong corporation of target enterprise is determined,through carding the specific affiliated transaction between Changlong corporation and related parties,the actual performance function and risk-taking risk of the research enterprise and its related party are analyzed and summarized.Secondly,by analyzing the specific transaction situation of Changlong corporation,this paper selects the transaction net profit method to evaluate Changlong corporation's transfer pricing policy,by using the relevant financial profit index,through comparability analysis,evaluates the rationality of Changlong corporation related procurement business,domestic related sales and overseas affiliated transactions,and reveals the tax risk that Changlong corporation may face from economic,political and credit in the development process.Finally,under the premise of exploring the influencing factors of tax risk prevention strategy,from the multi-angle,proposed Changlong corporation transfer pricing tax risk prevention strategy,to maximize the tax risk,improve the profit margin,and also provide reference for the similar enterprise transfer pricing tax risk prevention.