The economics of advance pricing agreements
Ronald B Davies
- Publisher: Center for Economic Studies and Ifo Institute (CESifo) Munich
Advance pricing agreements; Corporate taxation; Multinational firms; Transfer pricing | G32 | H25 | M41 | transfer pricing | multinational firms | Advance Pricing Agreements, Corporate Taxation, Multinational Firms, Transfer Pricing | advance pricing agreements | corporate taxation
Advance pricing agreements (APAs) determine transfer prices for intra-firm
transactions in advance. This paper interprets these contracts as a means to
overcome a hold-up problem that occurs because governments cannot commit
to non-excessive future tax rates. I...