Transfer pricing and profit shifting practices in a free trade zone a case in Batam, Indonesia, based on a Tax Court decision Maria R.U.D. Tambunan & Womsiter Sinaga
By: Tambunan, Maria R.U.D
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Contributor(s): Sinaga, Womsiter.
Material type: 
ArticlePublisher: 2020Subject(s): PRECIOS DE TRANSFERENCIA | ELUSION FISCAL | EROSIÓN DE LA BASE IMPONIBLE Y TRASLADO DE BENEFICIOS | INDONESIA
In:
Intertax v. 48, issue 11, November 2020, p. 1030-1044Summary: This study discusses how the offered tax incentives through the establishment of the Batam Free Trade Zone have been overexploited by Multinational Enterprise (MNE) manufacturers to minimize their tax obligation. The close geographic location to Singapore, the hub of the world's logistic shipping lane, provides easier access to these practices. The most common profit shifting schemes found in the region are transfer pricing and rerouting transactions. Concerning the transfer pricing practices based on the tax court decisions, it was determined that business entities have reported unreasonable business turnover with years of consecutive losses despite an increasing number of assets.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 2141/2020/11-8 (Browse shelf) | Available | OP 2141/2020/11-8 |
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Resumen.
This study discusses how the offered tax incentives through the establishment of the Batam Free Trade Zone have been overexploited by Multinational Enterprise (MNE) manufacturers to minimize their tax obligation. The close geographic location to Singapore, the hub of the world's logistic shipping lane, provides easier access to these practices. The most common profit shifting schemes found in the region are transfer pricing and rerouting transactions. Concerning the transfer pricing practices based on the tax court decisions, it was determined that business entities have reported unreasonable business turnover with years of consecutive losses despite an increasing number of assets.
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