TRANSFER PRICING AND CRITICAL FEMINIST TAX THEORY

Abstract

It is believed that transfer pricing has become the most important tax issue in 21st century. It draws researcher›s interest but surprisingly it has not yet been examined from the Critical Feminist Theory perspective, even though taxes should be within its scope of interest. The reason for this delay is that Critical theories—like the Critical Race Theory and The Critical Feminist Theory are often treated with suspicion or even rejected by mainstream scholars in economics, law and taxation.
This article is an attempt to search for an answer to the question how to apply a gender-neutral approach in formulating transfer pricing legislation. There is a generally accepted global mechanism of transfer pricing regulation based on the principles of a separate entity and an ALP (Arm’s Length Principle). This approach is the subject of increasing criticism from many transfer pricing professionals—both researchers and practitioners.
This article analyzes current transfer pricing mechanisms and known alternatives from the perspective of Critical Feminist Tax Theory researchers and to examine whether the current principles of transfer pricing are consistent with Critical Feminist Tax Theory proposals.
The author did not employ the Critical Feminist Theory approach, but, instead compared and contrasted feminist postulates with the alternatives and argumentation surrounding the debate on transfer pricing. Theoretical legal methods were mainly favored, while dogmatic methods served as an auxiliary approach. This article follows the assumption presented by some scholars that a scientific analysis of the Critical Feminist Tax Theory demands is feasible, but it is necessary to distinguish between the scientific and the ideological element.