Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1002818 | Management Accounting Research | 2010 | 18 Pages |
Abstract
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.
Keywords
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Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Christian Plesner Rossing, Carsten Rohde,