Overhead cost allocation changes in a transfer pricing tax compliant multinational enterprise

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• 作者：Christian Plesner Rossing ; Carsten Rohde
• 关键词：Cost accounting ; Overhead cost allocation ; Multinational enterprise ; International transfer pricing ; Tax compliance ; Case study
• 刊名：Management Accounting Research
• 出版年：2010
• 出版时间：September 2010
• 年：2010
• 卷：21
• 期：3
• 页码：199-216
• 全文大小：502 K

文摘

This paper addresses how overhead cost allocation system design in multinational enterprises (MNEs) is affected by transfer pricing tax regulation. Using a case study research strategy we find that the implementation of a transfer pricing tax compliance strategy gives rise to a number of changes to the overhead cost allocation system design. Findings suggests that a contingent relationship exists between overhead cost allocation and transfer pricing tax compliance. We argue that when seeking to understand and explain MNEs’ overhead cost allocation system design for intra-company services, the MNEs’ response to its tax regulatory environment is a significant explanatory variable.