Pengaruh Strategi Profit Shifting Multinationality dan Transfer Pricing terhadap Pemanfaatan Negara Tax Haven
Keywords:
Multinationality, Transfer Pricing, Profit ShiftingAbstract
This research aims to examine multinationality and transfer pricing influence on the topic of tax haven utilization. Sample of 24 certain publicly-listed Indonesian firms from the year 2018 to 2020 are tested using multiple linear regressions. Result confirms that multinational enterprise have no significant effect on the utilization of subsidiaries that are incorporated in tax havens. On the other hand, it has been demonstrated that transfer pricing is strongly and positively related with tax haven subsidiaries utilization. This study emphasizes the importance of conducting further research to verify if the use of tax haven subsidiaries only applies in a nation with a significant number of multinational corporations and high levels of foreign exposure. Statistical analysis also underlines the urge to maintain arm's length principle practice supervision. Further action on subsidiary activity to determine if tax haven activity is genuinely employed for constructive economic activity or only tax minimization would be beneficial.
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