| Summary: | 碩士 === 東吳大學 === 會計學系 === 97 === It is very common for profit-seeking enterprises to manipulate income by transfer pricing in the name of tax planning. To ensure certain tax income and catch up with international trend, Ministry of Finance enacted “Regulations Governing of Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm's-Length Transfer Pricing” in late 2004. Therefore, if enterprises still avoid tax by transfer pricing became an interesting issue. In addition, researches considering this topic were rare, and were mostly concluded using questionnaire or focused on special cases. Above reasons motivated the researches of this paper. Beginning with discussing possible factors that could affect transfer pricing, then we built connections between transfer pricing and income management. Last but not least, we tried to unravel effects on enterprises after the enactment of the regulation mentioned earlier and construct statistical models using data retrieved from Market Observation Post System and Taiwan Economics Journal database.
The first model shows that after the enactment of the regulation, domestic listed corporations tend to routinize their pricing. The second model shows that the more a corporation have control on its affiliates, the more possible it will take advantages of transfer pricing. However, large international corporations inclined to reduce oversea investment using transfer pricing after 2005. The third model reveals that the regulation discourages corporations from manipulating earning per share by transfer pricing.
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