AN OUTLINE OF INTERCONTINENTAL TRANSFER PRICING AND STATUTORY LAW

ABSTRACT Multinational Corporations have seen transfer pricing as a handy tool to achieving their acceptable corporate objectives to the detriment of home/host countries through unethical movement of one country’s tax revenue to another, thus, making transfer pricing a top-of-mind concern for most Countries. In an attempt to fight perceived income shifting by Multinational Corporations (MNCs), some countries have enacted transfer pricing rules which are either in accordance with the widely adopted Organization for Economic Cooperation and Development (OECD) Transfer Pricing Guidelines or far from it. This paper therefore seeks to discuss the common transfer pricing methods employed by multinational corporations and the use of appropriate legislations in some selected countries to control the unwholesome transfer pricing strategies employed by MNCs. Keywords: Transfer Pricing, Multinational Corporations (MNCs), Arm’s – Length Principle