Fuzzy Income Allocation of Multinationals: A Fuzzy Logic Concept For Transfer Pricing

Posted: 11 Jan 2006

See all articles by Markus Brem

Markus Brem

GTP GlobalTransferPricing Business Solutions GmbH; University of Augsburg

Date Written: January 2006

Abstract

The arm's length analysis of international transfer prices of multinational firms lacks a sound methodological approach of the so-called function and risk analysis. In practice, such analyses are of descriptive nature. Derived from Zadeh's mathematical theory of fuzzy sets, this paper investigates a quantitative approach to identify the function and risk pattern of related parties of the multinational group. We illustrate our fuzzy logic approach by means of a simplified example.

JEL Classification: C69, D49, L29, M21

Suggested Citation

Brem, Markus, Fuzzy Income Allocation of Multinationals: A Fuzzy Logic Concept For Transfer Pricing (January 2006). Available at SSRN: https://ssrn.com/abstract=874606

Markus Brem (Contact Author)

GTP GlobalTransferPricing Business Solutions GmbH ( email )

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Germany
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HOME PAGE: http://www.GlobalTransferPricing.com

University of Augsburg ( email )

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Augsburg, 86159
Germany

HOME PAGE: http://https://www.uni-augsburg.de/de/fakultaet/wiwi/prof/bwl/schultze/team/markus-brem/

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