An exposition of transfer pricing motives, strategies and their implementation in tax avoidance by MNEs in developing countries

The abuse of transfer pricing by multinational enterprises (MNEs) is a topical issue the world over. Abusive results in erosion tax bases and profit shifting from countries with high rates to those lower rates, thus enabling avoidance evasion. Developing are argued suffer most under negative impacts manipulation. This study investigates strategies employed MNEs minimise their burden developing countries. An understanding motives fundamental policy crafting improvements that effectively respond pricing. Adopting interpretivist research philosophy use in-depth interviews officers, consultants Ministry Finance Officials, established amongst schemes used Zimbabwe, predominant one was service fees. notable being management fees, this contribution knowledge as strategy found be scarcely discussed literature there very little empirical evidence back its existence. recommended targeted approaches revenue authority losses through intragroup services. findings serve vital information for policymakers, authorities auditors.