PENERAPAN ARM’S LENGTH PRINCIPLE DALAM PRAKTEK ABUSE OF TRANSFER PRICING PERUSAHAAN MULTINASIONAL DI INDONESIA

Abstract

Abuse of Transfer Pricing practice between Multinational Companies is very detrimental especially in taxation aspects. To prevent or settle such practice OECD issues ALP. However, the implementation of ALP are differs betwwen states which could leads to International Double Taxatation problems. This is what encourages this legal research in order to find solutions that can be done to deal with these problems. The approach of this legal research is the Law enforcement approach, conceptual approach and comparative approach. This legal found that to prevent and resolve the Abuse of Transfer Pricing, the application of the Arm's Length Principle was supplemented by a Bilateral or Unilateral Agreement between countries. In addition, it was also found that the technical rules of Arm's Length Principle in Indonesia is more complex than the OECD.