Transfer Pricing and Selected Problems Related to Their Implementation

Abstract

Changeability is an immanent feature of tax systems. Over the last years, it has been even more noticeable. The domestic systems of the member states strive for the widest possible scope of cooperation in order to fulfill all the demands of the fast developing society. In this article, the authors describe the development of the international cooperation with regard to countering the double taxation problem as well as tax avoidance in general. Against this background, the publications of the OECD from 2016 are most certainly worth mentioning, seeing that due to them the Base Erosion and Profit Shifting (BEPS) was published. Regulations set forth therein are aimed mostly at the interactions of different tax provisions that lead to non-taxation of the profit parts of international enterprises. One of the key objectives of the Project is referred to as Action 13, which introduces an obligation of three-tier transfer pricing documentation. Representing a standpoint that – from the legislative point of view – creating efficient and clear legal provisions is of paramount importance, the authors have attempted to examine the problems encountered by the legislator while the implementation process of the transfer pricing directives.