Zeitschrift für Zivil- und Rechtswissenschaften

Abstrakt

The Efficiency of Transfer Pricing Rules as a Corrective Mechanism of Income Tax Avoidance

Beebeejaun A

Tax avoidance has always been in the limelight attracting media attention, parliamentary scrutiny and public spotlight. The main actors concerned are the taxpayers, advisers and revenue authorities operating in a complex domestic and global tax environment that give rise to uncertainties, differing interpretations on taxation provisions and an exploitation of the loopholes of the tax system both at the national and international fronts. Much of the literature on tax avoidance calls for radical structural changes including fundamental policy thinking and international cooperation as remedies to tackle the issue of tax avoidance. However, it is important to highlight that tax avoidance needs to be dealt with vigour and public confidence as well since the underlying principle of any taxation system is to treat people in an equitable manner.