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Determination of Reasonable Intra-company Transaction Terms Using Market Based Approaches

  • Journal of Regulation Studies
  • 2012, 21(1), pp.89-133
  • Publisher : 한국규제학회
  • Research Area : Social Science > Public Administration

Namhoon Kwon 1 KIM,CHONGMIN 2 Jeon, Seonghoon 3 Jinhwa Chung 3

1건국대학교
2국민대학교
3서강대학교

Accredited

ABSTRACT

Intra-company transactions have two rather conflicting characteristics; Trade decisions are made by fiat in a ‘captive market’ among a group of related parties, while the terms of trade must reflect actual market situations. On the other hand, antitrust regulators and tax authorities are closely monitoring these transactions to prevent possible ‘unfair’ trading and/or tax evasions. In this paper, we explore an economic model to determine intra-company trade terms based on the arm’s length principle. Then, we evaluate several methods that can be used to apply such economic model to actual intra-company transactions.

Citation status

* References for papers published after 2023 are currently being built.

This paper was written with support from the National Research Foundation of Korea.