Influence of Transaction Transfer Pricing Policies on Corporate Organizations Tax in Nigeria

Augustine E Osho ,Folusho Olayemi Ilori

doi:10.7176/rjfa/11-6-07

Abstract

This study aimed to discuss the influence of transaction transfer pricing on corporate organizations tax in Nigeria. A descriptive research model was adopted. Secondary data were obtained from KPMG International (Tax) Bulletin report on fifty (50) major corporate organizations in Nigeria for 2014 to 2018 concerning transaction transfer pricing policies in terms of its influence on the organizations' business growths, tax rate, profit rate and tax liability. Results obtained for the study showed that transaction transfer pricing policies have a positive influence on the business growth on corporate organizations in Nigeria. It was recommended that corporate organizations should employ adequate measure that safeguards and avoid costly error in the implementation of transaction transfer pricing policies. Keywords: corporate organizations tax, transfer pricing, transfer pricing policies. DOI: 10.7176/RJFA/11-6-07 Publication date: March 31 st 2020

Highlights

Transaction transfer pricing is the price charged by one member of a corporate organizations to another member of the same organization for the provision of goods or services or the use of a property which includes intangible property (Nilufer, 2012)
This is an indication of high-level awareness of transaction transfer pricing policies among the corporate organizations in Nigeria and an indication of knowledge of applicable penalties that may arise in the event of non-compliance of transaction transfer pricing policies requirements
5.0 Conclusion The influence of transaction transfer pricing policies among corporate organization in Nigeria was studied using secondary data obtained from KPMG International (Nigeria) annual reports for the year 2014-2018 and analyzed using Origin61, a statistical software adopting regression analysis and descriptive analysis models

Summary

Introduction

Transaction transfer pricing is the price charged by one member of a corporate organizations to another member of the same organization for the provision of goods or services or the use of a property which includes intangible property (Nilufer, 2012). Transaction transfer pricing is the price transaction between related corporate organizations (such as a parent company and its foreign control) in an in a joint venture transaction (McKinley & Owsley, 2013). These transactions can include the sales of products, the provision of a service, the lending of money, the use of assets among others. The transaction transfer pricing policies, allow tax authorities to adjust prices for most intra-corporate organizations' transactions which include the transfers of tangible or intangible properties, services and loans (Cooper, Fox, Leoprick, Mohindra, 2016)

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