이전가격 세제의 회고와 전망

Abstract

This paper aims at reviewing the history, the current situation and the likely

future of transfer pricing. The leading thesis is that transfer pricing as a legal

system has failed. The transfer pricing rules remain only in name, and their

substance has already vanished. In the current world, the rules have degenerated

to an inefficient and perhaps unfair system that tax revenue from monopoly

profits of multinational firms are shared among national treasuries based on an

unscrupulous, ad-hoc negotiation without clear or predictable rules.

After a brief introductory Part Ⅰ, Part Ⅱ covers the history of transfer

pricing rule, focusing on how the current rules became established as a global

norm. Part Ⅲ briefly summarizes the current Korean rules. Part Ⅳ addresses the

reality of the transfer pricing practice and reveals the transfer pricing rules do

not function as law any more, in that the rules do not mandate any specific

result when applied to a fact. Part Ⅴ addresses a very practical issue of the

cost sharing agreement under Korean law. Part Ⅵ analyzes corresponding

adjustment and secondary adjustment, focusing on the treaty aspect of the issues.

Part Ⅶ concludes the paper with a prediction of the future of the transfer

pricing.