Tax strategy control: The case of transfer pricing tax risk management

Rossing, Christian Plesner

doi:10.1016/j.mar.2013.04.008

Cited by 54 publications

(34 citation statements)

References 86 publications

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“…Strategic decisions and capital expenditures are prone to be centralized (e.g., Al-Husan and James 2003; Finnegan and Ni Longaigh 2002;Moilanen 2008). Particularly, global transfer pricing policies-in some cases triggered by tax compliance requirements-appear to reduce the autonomy of subsidiaries (Cools et al 2008;Cools and Slagmulder 2009;Plesner Rossing 2013). As transfer prices influence the performance of subsidiaries, PMS need to be adapted to avoid demotivation and dysfunctional behavior of managers (Borkowski 1999;Busco et al 2008;Cools and Slagmulder 2009).…”

Section: Process Controlmentioning

confidence: 99%

“…However, the efficiency of process control seems limited when it hinders flexibility (Cools and Slagmulder 2009;Plesner Rossing 2013;Richards and Hu 2003).…”

Section: Process Controlmentioning

confidence: 99%

“…By the end of the 1990s, the legal and political environment gained increasing attention in qualitative studies. Contributions discuss the legal and political influences in emerging countries (Beard and Al-Rai 1999;Moilanen 2007;Taylor 1999); other studies focus on tax compliance requirements in the US and Europe leading to corporate transfer pricing policies (Cools et al 2008;Cools and Slagmulder 2009;Plesner Rossing 2013).…”

Section: Process Controlmentioning

confidence: 99%

“…Tax authorities increasingly restrict flexibility of transfer prices to limit tax-minimizing behavior of MNCs. In the past decade, tax compliance has been reported as dominating criterion for setting transfer pricing within MNCs thereby undermining business aspects (Cools et al 2008;Cools and Slagmulder 2009;Plesner Rossing 2013). Tax legislation and tax-optimizing policies on the group level entail far-reaching implications for MC.…”

Section: Environment In the Country Of Originmentioning

confidence: 99%

“…Otherwise, restricted accountability may limit the motivation for innovative behavior at subsidiaries (Cools et al 2008) and lead to suboptimal economic decisions (Cools and Slagmulder 2009) Standardized transfer prices are proposed to enhance the use of external benchmarks, increase internal transparency and promote non-financial performance indicators to adjust performance evaluation (Cools et al 2008). Moreover, corporate transfer pricing fosters centralization and formalization at the expense of flexibility (Cools et al 2008;Cools and Slagmulder 2009;Plesner Rossing 2013). Tax compliance issues have been researched in case studies since 2008, indicating considerable impacts on centralization and PMS.…”

Section: Environment In the Country Of Originmentioning

confidence: 99%

See 4 more Smart Citations

Management control in multinational companies: a systematic literature review

Sageder

Feldbauer‐Durstmüller

2018

Rev Manag Sci

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Executing management control across borders is crucial for multinational companies (MNCs). Various management control mechanisms serve to align foreign subsidiaries with corporate goals. Management control at MNCs has been subject of numerous studies in the past 25 years, thus highlighting the relevance of the topic. To provide a comprehensive overview of the research field, a systematic literature review including 79 articles from scientific journals has been conducted that outlines various control mechanisms and presents underlying theories as well as development over time. The design of management control and management accounting depends on internal factors at headquarters and the subsidiary as well as on external factors like culture or market requirements. The relationship of headquarters with subsidiaries and the integration into the host country context represent another influence on management control. This paper categorizes influencing factors, discusses interactions and limitations of control mechanisms and suggests implications for practice and research along with avenues for future research.

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Section: Process Controlmentioning

confidence: 99%

“…However, the efficiency of process control seems limited when it hinders flexibility (Cools and Slagmulder 2009;Plesner Rossing 2013;Richards and Hu 2003).…”

Section: Process Controlmentioning

confidence: 99%

Section: Process Controlmentioning

confidence: 99%

Section: Environment In the Country Of Originmentioning

confidence: 99%

Section: Environment In the Country Of Originmentioning

confidence: 99%

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Management control in multinational companies: a systematic literature review

Sageder

Feldbauer‐Durstmüller

2018

Rev Manag Sci

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Risk-Oriented Approach to Tax Control for Stabilization of Financial Systems of Developing Countries by the Example of Modern Russia

Gashenko

Zima

2018

The Future of the Global Financial System: Downfall or Harmony

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Accounting Standard-Setting for an Emission Trading Scheme: The Korean Case

2022

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This study examines the participation and interaction of relevant individuals in the process of developing an accounting standard for South Korea’s emission trading scheme (ETS). Despite the enormous accounting implications of such schemes, there is a paucity of research on the development and application of ETS accounting. Ulrich Beck’s and Anthony Giddens’s risk society framework is utilised to scrutinise the process of setting accounting standards—from the agenda-setting stage all the way to the final publication of the standard. In this case study, we take an interpretive approach in analysing the rich data collected through face-to-face interviews with prominent standard-setters, accounting experts and representatives of industry and government. Participant observation and relevant documents were also considered. The findings highlight the political nature of accounting standard-setting and identify the risks and responsibilities of the key agents in the process along with the means of sub-political action taken to influence decisions. We reveal that the agents involved in standard-setting attempted to balance their anthropocentric priorities with ecocentric responsibilities and prioritised the production of a standard with minimal impact on economic, reputational, and operational risk. Having authority as a standard-setter, referring frequently to precedents and, perhaps most importantly, engaging actively with the stakeholders throughout the process seem to have contributed to a widely accepted standard, which can serve as a benchmark for future attempts to factor in ETSs.

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Tax strategy control: The case of transfer pricing tax risk management

Cited by 54 publications

References 86 publications

Management control in multinational companies: a systematic literature review

Management control in multinational companies: a systematic literature review

Risk-Oriented Approach to Tax Control for Stabilization of Financial Systems of Developing Countries by the Example of Modern Russia

Accounting Standard-Setting for an Emission Trading Scheme: The Korean Case

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