April 9th, 2010
It’s really very strange to note that Jersey Finance have issued a report criticising Christian Aid’s reports on transfer mispricing. There are a number of very good reasons for thinking it so, even before I turn to the deficiencies in the report they have issued.
First of all, what, might one ask, has this to do with Jersey? It’s a good question, because it does not feature in those reports Christian Aid have issued. Nor would it seem likely that it should. Christian Aid’s work relates to mispricing of goods, not services. More than 50% of Jersey’s GDP is generated...
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August 28th, 2009
Forbes Magazine has published an excellent
article today which highlights the massive problem of
transfer mispricing and the risk it poses to shareholders. The article cites GFI Director Raymond Baker as well as GFI's Illicit Financial Flows
report several times. From
Forbes:
Shareholders in many of the world's leading multinational corporations face significant financial peril from a source few have probably ever thought about: transfer pricing.
So says Raymond Baker, director of Global Financial Integrity, a non-profit in Washington, D.C., that promotes policies aimed at curtailing the...
August 28th, 2009
Forbes -- Shareholders in many of the world's leading multinational corporations face significant financial peril from a source few have probably ever thought about: transfer pricing.
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August 12th, 2009
A few weeks ago, I wrote a
blog recapping some of the ways companies use trade mispricing to dodge their bill from Uncle Sam. In response, one reader asked “why don’t these companies just set up subsidiaries outside of the U.S. and keep their finances in a lower tax jurisdiction?” The answer is: they do. It’s called transfer pricing and it’s
all the rage. Multinational corporations use
transfer pricing to shift profits from a comparatively high-tax country (like the U.S. or UK) to a low-tax jurisdiction (like the Cayman Islands or Aruba)...
