Article Sidebar

Download
PDF
Statistic
Read Counter : 144 Download : 141

Main Article Content

Abstract

Cooperative compliance is often defined as a framework for trust-based relationships in which tax authorities and taxpayers work together to establish and uphold mutual understanding. The main reported areas of tax compliance risks and disputes in Indonesia include profit shifting and transfer pricing. Through a literature review, we attempt a stocktake of the cooperative compliance literature in this review about transfer pricing supervision. A comprehensive literature search identified 17 studies published between 2014 and 2023. Two key types of interventions were identified: cooperative compliance and transfer pricing supervision. According to the review's findings, cooperative compliance research should focus more on using cooperative compliance as a strategic tool in business than just on tax compliance. This evaluation concludes with recommendations for future cooperative compliance research.

Keywords

Cooperative Compliance Transfer Pricing Supervision Literature Review

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Supriyadi. (2023). What do we know about Cooperative Compliance? Insights from Literature Review in Transfer Pricing Supervision. Ilomata International Journal of Tax and Accounting, 5(1), 1-14. https://doi.org/10.52728/ijtc.v5i1.956

References

  1. Adams, J. R., & Bauer, A. M. (2023). Cooperative Versus Adversarial Tax Audits: Implications of Transparency for Tax Compliance and Financial Reporting Quality. Available at SSRN 4436316.
  2. Bank, A. D. (2016). A Comparative Analysis of Tax Administration in Asia and the Pacific: 2016.
  3. Bartelsman, E. J., & Beetsma, R. M. W. J. (2003). Why pay more? Corporate tax avoidance through transfer pricing in OECD countries. Journal of Public Economics, 87(9–10), 2225–2252.
  4. Borkowski, S. C. (1997). The transfer pricing concerns of developed and developing countries. The International Journal of Accounting, 32(3), 321–336.
  5. Chan, K. H., Lo, A. W. Y., & Mo, P. L. L. (2006). Managerial autonomy and tax compliance: An empirical study on international transfer pricing. Journal of the American Taxation Association, 28(2), 1–22.
  6. Chen, C. X., Chen, S., Pan, F., & Wang, Y. (2015). Determinants and consequences of transfer pricing autonomy: An empirical investigation. Journal of Management Accounting Research, 27(2), 225–259. https://doi.org/10.2308/jmar-50927
  7. Colon, D. W., & Swagerman, D. M. (2015). Enhanced relationship preparedness in a Dutch multinational context: A tax control framework. Journal of Accounting and Taxation, 7(1), 13–18.
  8. Cooper, J., Fox, R., Loeprick, J., & Mohindra, K. (2017). Transfer pricing and developing economies: A Handbook for policy makers and practitioners. World Bank Publications.
  9. Dunning, J. H., & Lundan, S. M. (2008). Multinational enterprises and the global economy. Edward Elgar Publishing.
  10. Eberhartinger, E., & Zieser, M. (2021a). The Effects of Cooperative Compliance on Firms’ Tax Risk, Tax Risk Management and Compliance Costs. Schmalenbach Journal of Business Research, 73(1), 125–178. https://doi.org/10.1007/s41471-021-00108-6
  11. Eberhartinger, E., & Zieser, M. (2021b). The effects of cooperative compliance on firms’ tax risk, tax risk management and compliance costs. Schmalenbach Journal of Business Research, 73, 125–178.
  12. Flanagan, J. L. (2018). Holding US Corporations Accountable: Toward a convergence of US international tax policy and international human rights. Pepp. L. Rev.
  13. Goslinga, S., Jonge, J. D., Siglé, M., & Dijk, H.-V. (2021). Cooperative Compliance Programmes: Who Participates and Why. Journal of Tax Administration, 6(2), 95–121.
  14. Haniv, M. (2020). Model Pengaruh Cooperative Compliance terhadap Kepercayaan Wajib Pajak dan Kepatuhan Wajib Pajak. Simposium Nasional Keuangan Negara.
  15. Holtzman, Y., & Nagel, P. (2014). An introduction to transfer pricing. Journal of Management Development, 33(1), 57–61.
  16. Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The “slippery slope” framework. Journal of Economic Psychology, 29(2), 210–225.
  17. Kirchler, E., Kogler, C., & Muehlbacher, S. (2014). Cooperative tax compliance: From deterrence to deference. Current Directions in Psychological Science, 23(2), 87–92.
  18. Klassen, K. J. (2017). Transfer pricing: Strategies, practices, and tax minimization. Contemporary Accounting Research, 34(1), 455–493. https://doi.org/10.1111/1911-3846.12239
  19. Kumar, S. (2021). What do we know about transfer pricing? Insights from bibliometric analysis. Journal of Business Research, 134, 275–287. https://doi.org/10.1016/j.jbusres.2021.05.041
  20. Larsen, L. B., & Oats, L. (2019). Taxing large businesses: cooperative compliance in action. Intereconomics, 54, 165–170.
  21. Löffler, C. (2019). Divisionalization and domestic transfer pricing for tax considerations in the multinational enterprise. Management Accounting Research, 45. https://doi.org/10.1016/j.mar.2019.07.003
  22. Martinez, A. L. (2021). Cooperative Compliance: SWOT Analysis for the Brazilian CONFIA Program. Available at SSRN 3919989.
  23. Maulana, A., & Abbas, Y. (2021). KETERTERAPAN KONSEP COOPERATIVE COMPLIANCE PADA AKTIVITAS PENGAWASAN WAJIB PAJAK. JABE (Journal of Applied Business ….
  24. McMahon, C. P., Corcelius, A., & Smith, B. (2013). International transfer pricing. Journal of Accounting, Ethics and Public Policy, 14(1), 59–75. https://www.scopus.com/inward/record.uri?eid=2-s2.0-84905492777&partnerID=40&md5=f4b1faa57f8e9d44e97aaf04d36f424f
  25. Nguyen, H. N., Tham, J., Khatibi, A., & Ferdous Azam, S. M. (2020). Conceptualizing the effects of transfer pricing law on transfer pricing decision making of FDI enterprises in Vietnam. International Journal of Data and Network Science, 4(2), 187–198. https://doi.org/10.5267/j.ijdns.2020.1.002
  26. Prichard, W., Custers, A. L., Dom, R., & ... (2019). Innovations in tax compliance: Conceptual framework. World Bank Policy ….
  27. Rossing, C. P. (2013). Tax strategy control: The case of transfer pricing tax risk management. Management Accounting Research, 24(2), 175–194.
  28. Sari, D., Utama, S., Fitriany, & Rahayu, N. (2021). Transfer pricing practices and specific anti-avoidance rules in Asian developing countries. International Journal of Emerging Markets, 16(3), 492–516. https://doi.org/10.1108/IJOEM-10-2018-0541
  29. Sari, E. W., & Markhumah, U. (2023). Implikasi Transfer Pricing: Dampaknya bagi Praktik Corporate Tax Planning. FISCAL: Jurnal Akuntansi Dan Perpajakan, 1(2), 88–95.
  30. Smolarski, J. M., Wilner, N., & Vega, J. G. (2019). Dynamic transfer pricing under conditions of uncertainty – the use of real options. Journal of Accounting and Organizational Change, 15(4), 535–556. https://doi.org/10.1108/JAOC-08-2018-0083
  31. Sub-group, C. (2004). Compliance Risk Management : Managing and Improving Tax Compliance October 2004. October.
  32. Sun, S. L., Peng, M. W., Ren, B., & Yan, D. (2012). A comparative ownership advantage framework for cross-border M&As: The rise of Chinese and Indian MNEs. Journal of World Business, 47(1), 4–16.
  33. Susanti, A., & Firmansyah, A. (2018). Determinants of transfer pricing decisions in Indonesia manufacturing companies. Jurnal Akuntansi Dan Auditing Indonesia, 81–93.
  34. Tambun, S., Sitorus, R. R., & Atmojo, S. (2020). Pengaruh Digitalisasi Layanan Pajak Dan Cooperative Compliance Terhadap Upaya Pencegahan Tax avoidance Dimoderasi Kebijakan Fiskal Di Masa Pandemi Covid 19. Media Akuntansi Perpajakan, 5(2), 74–86.
  35. Tambunan, M. (n.d.). Pelaksanaan Konsep Cooperative Compliance di Beberapa Negara OECD: Australia, Italia, Belanda dan Amerika Serikat. Bagaimana di Indonesia? In academia.edu.
  36. Tambunan, M. R. U. D. (2022). Transfer Pricing Settlement in Indonesia: A Note for Tax Authority, Tax Court, and Taxpayers based on the Tax Court Decisions. BISNIS & BIROKRASI: Jurnal Ilmu Administrasi Dan Organisasi, 29(2), 1.
  37. Waworuntu, S. R., & Hadisaputra, R. (2016). Determinants of transfer pricing aggressiveness in Indonesia. In Pertanika J. Soc. Sci. & Hum. psasir.upm.edu.my.