Lost billions-Transfer Pricing in the Extractive Industries
- Norway Publish What You Pay Norway 2012.
- 20p.
Over 110 billion US dollars seems to have disappeared in over and under pricing on import of crude oil in the European Union and the USA between 2000 and 2010. How did that happen? Transfer pricing is one of the most usual techniques that extractive industries can use to transfer profits from the source country and to the company itself. Today, over 60% of world trade is taking place within transnational companies, such as the extractive industries. The OECD suggests that companies should keep arm's length prices; as if they traded with a company outside the company structure itself. But do they do this? And does this guiding principle work?
