Analysis reveals foreign ownership amplifies tax avoidance through transfer pricing, suggesting regulatory enhancements are needed.
Key Points
Foreign ownership significantly intensifies the connection between transfer pricing and tax avoidance, indicating aggressive tax minimization strategies.
Analysis of 217 industrial companies from 2020 to 2023 showed that company size, growth, and asset tangibility correlate positively with tax avoidance.
Quantitative models were employed to analyze data extracted from annual reports, revealing critical insights for policymakers.
This research highlights the necessity for improved regulatory oversight to tackle transfer pricing abuses and foster fair tax practices.