TRANSFER PRICES: AN ECONOMIC AND FISCAL APPROACH

Abstract

This paper presents the transfer prices in the context of an enhanced and intensified control of the tax authorities, analyzing them both from an economic and fiscal perspective. Theoretically speaking, the economic approach is different from the fiscal one. There are arguments sustaining the disconnection between the economic and fiscal aspects of the transfer prices. We assist at a stronger regulation associated to the fiscal point of view and at an improvement of the resulted finance taxation. Realizing a detailed and deep documentation of the existing scientific literature in this field, processing and interpreting statistical data and using a comparative data analysis, this study arrives at the conclusion that transfer prices should be considered by taking into account all the economic, taxation and custom implications. Only such a complete and integrated approach may offer safety to companies when they are confronted with custom or fiscal inspections.