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Authors:
Ilham Hidayah Napitupulu, Harris Pinagaran Nasution, Anggiat Situngkir, Alwi Syahputra, Indonesia
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Abstract:
The purpose of this study is to examine the motives of companies to conduct transfer pricing practices that are triggered due to tax and tunneling incentives. This research is a descriptive verification study using multiple linear regression analysis tools assisted by the SPSS test tool. The research sampling technique used purposive sampling, where the number of research samples were 21 manufacturing companies in the food and beverage sector from 53 listed companies. The results found that tax affects the practice of transfer pricing, while tunneling incentives do not affect the practice of transfer pricing. Companies are more likely to transfer profits to companies through manipulation of transfer prices and tunneling incentives tend to do earnings management by transfer pricing.
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