Thin capitalization and distribution of concealed incomes through pricing at the corperation tax

ABSTRACTTHIN CAPITALIZATION AND DISTRIBUTION OF CONCEALED INCOMESTHROUGH TRANSFER PRICING AT THE CORPARATION TAXEmrullah AslanDepartment of Public FinanceAfyonkarahisar Kocatepe University, The Institute of Social SciencesSeptember 2006Advisor: Assistant Professor Mustafa Ali SARILIIn this study, the new regulations of the Corparation Tax Law, numbered 5520, on theinstitutions which distribute concealed incomes through transfer pricing and thincapitalization, are analyzed. A critic was done about the related institutions with regards to theold Corparation Tax Law (5422) and international applications. In the study, in addition to thetheoretical background, its application is evaluated. As a result, with the new regulations,Turkish legislation became more in line with the international legislation in terms ofconcealed incomes and distribution of concealed incomes through transfer pricing.