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Student Project | Economics and Business | Indonesia | Volume 11 Issue 1, January 2022

Analysis of Affiliated Parties and Transactions Affected by Affiliated Parties

Elis Rismawati | Azwar Amiruddin

Abstract: This study aims to review related transactions that are affected by affiliated parties. Affiliated parties are an ownership relationship between one company and another company caused by the relationship between one party and the other that is not found in a normal relationship. The term tax-related relationship is usually used in tax cases relating to affiliated transactions or transactions of related parties. Transfer Pricing in related transactions is defined as a special selling price used in inter-divisional exchanges to record the selling division's revenue and the buying division's costs. The main purpose of transfer pricing is to evaluate and measure the performance of a company. However, in many practice findings, transfer pricing is used by companies to minimize the number of tax payments through price engineering that is transferred between divisions. The special relationship transaction between Taxpayers occurs if there is a condition that is suspected to influence the determination of the decision unreasonably. To anticipate state losses due to decreased tax revenues due to related transactions, the government has issued several regulations regarding the management of related transactions, such as the Minister of Finance Regulation (PMK No.213/PMK.03/2016). The Directorate General of Taxes (Direktorat Jenderal Pajak (DJP)) has the authority to re-determine the number of transfer prices between parties that have affiliated parties. This study uses a qualitative method using secondary data. Secondary data is in the form of other people's research, reviews, and summaries. In this study, the data taken is literature data that explains related to transaction tax management that is influenced by affiliated parties.

Keywords: Affiliated parties, transfer pricing, taxation

Edition: Volume 11 Issue 1, January 2022,

Pages: 1007 - 1013