A Study on the Regulations Governing Assessment of Non-Arm''s Length Transactions in Taiwan

• Main Authors: Hsin-Yi Hsieh, 謝馨儀
• Other Authors: Yu-Wei Cheng
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/81629987462967659689

碩士 === 國立中央大學 === 產業經濟研究所碩士在職專班 === 99 === Enterprise Transactions and mutual investments are becoming more and more frequent internationally, affiliates are always pursuing in maximizing profits or arranging non-arm''s length transfer pricing transaction in order to achieve reducing the enterprises'' total global tax burden, resulting a lesser income of the tax revenue in many countries. Therefore, many countries are now introducing a defense mechanism in tax affairs on price transfer. Our government is very committed and supportive in developing this defense mechanism. “The Regulations Governing of Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm''s Length Transfer Pricing” has now been operating officially in its sixth year since 2004, although the release of this regulations has a common to tax authority and enterprise as they must follow the same principle, solutions and procedures; but some regulations are still very complicated, from understanding to actual practice isn''t easy, furthermore, the new system was well-intentioned, but the transfer pricing regulations has aroused many legitimacy doubts, there are room for improvement and evaluation. If this regulations have not re-define clearly, will ultimately result in reduce of tax authority’s power in verifying transfer pricing, leading to enterprise unwillingness to participate in paying taxes, excluding the possibility in the future that the judiciary might declare it wrongful and unsuitable. This research attempts from a professional''s point of view, combining transfer pricing theory, our legal system and actual practice, analysis of the current regulations has its flaws, by bring up any possible suggestions, in hoping our country can fulfill in establish a fair and more reasonable income tax system and regulations.