The concept of associated persons as a key and potentially problematic aspect in transfer pricing
Transfer pricing (TP) is based on many principles – the essential one is the Arm´s Length Principle (ALP). In this respect, the term “associated persons” is of crucial importance: associated persons must be involved in transactions in order for the ALP to be applied. The aim of the paper is to contr...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2023-03-01
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| Series: | Financial Internet Quarterly |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/fiqf-2023-0003 |
| _version_ | 1797848545367162880 |
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| author | Brychta Karel Abreu Matheus Chebli de Hudenko Justina Santos Lucas Scheremetta Poubel Lucas Cunha do Valle |
| author_facet | Brychta Karel Abreu Matheus Chebli de Hudenko Justina Santos Lucas Scheremetta Poubel Lucas Cunha do Valle |
| author_sort | Brychta Karel |
| collection | DOAJ |
| description | Transfer pricing (TP) is based on many principles – the essential one is the Arm´s Length Principle (ALP). In this respect, the term “associated persons” is of crucial importance: associated persons must be involved in transactions in order for the ALP to be applied. The aim of the paper is to contribute to existing comparative analysis of TP rules – specifically, to provide a critical analysis of the term “associated persons” as prescribed by domestic law in Brazil, the Czech Republic, and Latvia. The key goals of the research conducted were to provide a comprehensive picture of the variety of definitions, to indicate relationships between international law and domestic law, and last, but not least, to highlight various concepts of the term “associated persons” and to identify problematic aspects connected with the interpretation of the definitions and the applications of the related rules. The study, which is based on qualitative research, is exploratory and interpretative in its nature. Its results present a background for further research and point to the fragmentation of law on TP with respect to the investigated issue. On the basis of the results of the comparative study one can conclude significant differences among, and fragmentation in, the definitions of the term “associated persons” both in respect of the number of categories established and in respect of the absence of the autonomy of the definitions of the term “associated persons” as provided by public law (especially by income tax acts). At the same time one can conclude the same position regarding the application of double tax treaties in all the countries for which the study was carried out. |
| first_indexed | 2024-04-09T18:29:15Z |
| format | Article |
| id | doaj.art-f0639576d2604c9db8f971237aa8bb7d |
| institution | Directory Open Access Journal |
| issn | 2719-3454 |
| language | English |
| last_indexed | 2024-04-09T18:29:15Z |
| publishDate | 2023-03-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Financial Internet Quarterly |
| spelling | doaj.art-f0639576d2604c9db8f971237aa8bb7d2023-04-11T17:42:39ZengSciendoFinancial Internet Quarterly2719-34542023-03-01191213310.2478/fiqf-2023-0003The concept of associated persons as a key and potentially problematic aspect in transfer pricingBrychta Karel0Abreu Matheus Chebli de1Hudenko Justina2Santos Lucas Scheremetta3Poubel Lucas Cunha do Valle41Brno University of Technology, Czech Republic2University of São Paulo, Brazil3Riga Technical University, Latvia4Federal University of Paraná, Brazil5Federal University of Minas Gerais, BrazilTransfer pricing (TP) is based on many principles – the essential one is the Arm´s Length Principle (ALP). In this respect, the term “associated persons” is of crucial importance: associated persons must be involved in transactions in order for the ALP to be applied. The aim of the paper is to contribute to existing comparative analysis of TP rules – specifically, to provide a critical analysis of the term “associated persons” as prescribed by domestic law in Brazil, the Czech Republic, and Latvia. The key goals of the research conducted were to provide a comprehensive picture of the variety of definitions, to indicate relationships between international law and domestic law, and last, but not least, to highlight various concepts of the term “associated persons” and to identify problematic aspects connected with the interpretation of the definitions and the applications of the related rules. The study, which is based on qualitative research, is exploratory and interpretative in its nature. Its results present a background for further research and point to the fragmentation of law on TP with respect to the investigated issue. On the basis of the results of the comparative study one can conclude significant differences among, and fragmentation in, the definitions of the term “associated persons” both in respect of the number of categories established and in respect of the absence of the autonomy of the definitions of the term “associated persons” as provided by public law (especially by income tax acts). At the same time one can conclude the same position regarding the application of double tax treaties in all the countries for which the study was carried out.https://doi.org/10.2478/fiqf-2023-0003associated personsarm´s length principlebrazilczech republiclatviatransfer pricingf23h25k34 |
| spellingShingle | Brychta Karel Abreu Matheus Chebli de Hudenko Justina Santos Lucas Scheremetta Poubel Lucas Cunha do Valle The concept of associated persons as a key and potentially problematic aspect in transfer pricing Financial Internet Quarterly associated persons arm´s length principle brazil czech republic latvia transfer pricing f23 h25 k34 |
| title | The concept of associated persons as a key and potentially problematic aspect in transfer pricing |
| title_full | The concept of associated persons as a key and potentially problematic aspect in transfer pricing |
| title_fullStr | The concept of associated persons as a key and potentially problematic aspect in transfer pricing |
| title_full_unstemmed | The concept of associated persons as a key and potentially problematic aspect in transfer pricing |
| title_short | The concept of associated persons as a key and potentially problematic aspect in transfer pricing |
| title_sort | concept of associated persons as a key and potentially problematic aspect in transfer pricing |
| topic | associated persons arm´s length principle brazil czech republic latvia transfer pricing f23 h25 k34 |
| url | https://doi.org/10.2478/fiqf-2023-0003 |
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