Journal • CITN Journal

Editorial Board

Editor-in-Chief

Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

TRANSFER PRICING AND PROFITABILITY OF MULTINATIONAL ENTERPRISES: A CONCEPTUAL DISCOURSE

Description

TRANSFER PRICING AND PROFITABILITY OF MULTINATIONAL ENTERPRISES: A CONCEPTUAL DISCOURSE

Authors

OGBAISI, Sebastine Abhus and UKWA, James Okeke

Abstract

Transfer pricing is a technique used by multinational enterprises (MNEs) to shift profits out of the countries of their operation into tax havens. Shifting of profits by MNEs to their home countries through transfer pricing is common. Therefore, this study adopts a conceptual perspective in the examination of the issue of transfer pricing of the profit of multinational enterprises (MNEs) in Nigeria. It examines the issues in transfer pricing and the institutional set-up that has encouraged this as well as the factors affecting transfer pricing in MNEs. The paper progresses to present a review of theory and some pertinent studies on the issue of transfer pricing of MNEs. Finally, it highlights the challenges of transfer pricing and the strategies of overcoming it. The study concludes that sustainable development and effective implementation of policies to mitigate transfer pricing depend on a concrete understanding of the entire policy environment. Therefore, policy coherence is needed in this regard, particularly with respect to a robust policy on transfer pricing and taxes. The study recommends that institutional capacity be strengthened, particularly the legal framework as well as strong government effectiveness and capacity to curtail the humongous outflow of resources, as well as the implementation of reforms in the fiscal environment to make Nigeria benefit maximally from MNEs.

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