TRANSFER PRICESES, INTERNATIONAL TAX PROBLEMS

More then two thirds of today's world trade takes place between interconnected companies. Interconnected companies often purchase and sell business effects from other companies in the group. Their transactions are known as transfers, and the prices according to which they calculate the value of puchase and sales of business effects within the company or group of companies, are known as transfer prices. With the ever-increasing globalisation, transfer prices have become one of the main areas which multinational, as well as tax authorities, will be dealing within the next few years.

Key words: transfer prices, transactions, interconnected companies, independent companies, multinational, prices on market.