transfer pricing

Businesspeople may be apprehensive about the sweeping allegation by a senior tax official last week that about 3,400 or 70 percent of registered foreign corporate taxpayers in Indonesia, which did not pay income tax last year because they lost money, were suspected of unlawful transfer pricing practices.
Though the Jakarta tax chief, Muhammad Said, himself acknowledged that it is extremely difficult to establish transfer pricing, and thus far not a single case of such a corporate fraud had been uncovered, the sudden airing of the issue could cause a sense of foreboding.
Big questions arose as to why the tax directorate general suddenly brought up that issue, warning that 252 foreign companies that did not supplement their annual income tax returns with audited financial reports were being investigated.
Does the tax directorate general's suspicion have anything to do with the target of a 26.5 percent increase set for income tax receipts for the 2003 fiscal year? Does this portend 'ha...