Profit repatriation of a Polish subsidiary from tax planning point of view of an international corporation

The main purpose of this study was to examine and compare the possibilities of profit repatriation from the point of view of tax planning of an international corporation, in such a case that a Finnish parent company has a subsidiary in Poland. The main research problem was divided into two sub research problems: 1) to examine concepts and principles of international taxation and tax planning from the point of view of international corporations and 2) to discuss the main features of Polish Companies-, Accounting- and Tax Act from the point of view a Finnish parent company. The research method of this study is mainly decision making, comparative analysis. In this study have been discussed the possibilities of international profit repatriation for supporting the decision making of the management of a Finnish parent company. In addition different repatriation possibilities have been compared. In this study has been noticed that a Finnish parent company can repatriate profit of its Polish subsidiary either directly as dividends or by using indirect methods such as interests, royalties, management fees and transfer pricing of goods. The total tax burden of dividends is heavier than the tax burden of indirect methods. It was also concluded that during the last years the Polish legislation has been renewed in order to prevent hidden dividend distribution. This has been done by implementing new rules of transfer pricing and thin capitalization.

A three dimensional study of heat transfer in a supercritical circulating fluidized bed combustor

From the boiler design point of view, it is imperative to know and understand the operation of the boiler. Since comprehensive measurement of a large furnace is impossible, the furnace can be modeled in order to study its behavior and phenomena. This requires the used model to be validated to correspond with the physical furnace behavior. In this thesis, a three dimensional furnace model is validated to match a bituminous coal utilizing, supercritical once-through circulating fluidized bed combustor based on measurement data. The validated model is used for analyzing the furnace heat transfer. Other heat transfer analysis methods are energy balance method based on tube surface temperature measurements and a method based on measured temperature difference between the tube crest and the fin. The latter method was developed in the thesis using Fluent-software. In the theory part, literature is reviewed and the fundamental aspects of circulating fluidized bed are discussed. These aspects are solid particle behavior in fluidization known as hydrodynamics, behavior of fuel and combustion and heat transfer. Fundamental aspects of modeling are also presented.

A stochastic dynamic programming approach for pricing options on stock-index futures

The aim of this thesis is to price options on equity index futures with an application to standard options on S&P 500 futures traded on the Chicago Mercantile Exchange. Our methodology is based on stochastic dynamic programming, which can accommodate European as well as American options. The model accommodates dividends from the underlying asset. It also captures the optimal exercise strategy and the fair value of the option. This approach is an alternative to available numerical pricing methods such as binomial trees, finite differences, and ad-hoc numerical approximation techniques. Our numerical and empirical investigations demonstrate convergence, robustness, and efficiency. We use this methodology to value exchange-listed options. The European option premiums thus obtained are compared to Black's closed-form formula. They are accurate to four digits. The American option premiums also have a similar level of accuracy compared to premiums obtained using finite differences and binomial trees with a large number of time steps. The proposed model accounts for deterministic, seasonally varying dividend yield. In pricing futures options, we discover that what matters is the sum of the dividend yields over the life of the futures contract and not their distribution.

Two-Phase Frictional Pressure Drop and Flow Boiling Heat Transfer for R245fa in a 2.32-mm Tube

Experimental two-phase frictional pressure drop and flow boiling heat transfer results are presented for a horizontal 2.32-mm ID stainless-steel tube using R245fa as working fluid. The frictional pressure drop data was obtained under adiabatic and diabatic conditions. Experiments were performed for mass velocities ranging from 100 to 700 kg m−2 s−1 , heat flux from 0 to 55 kW m−2 , exit saturation temperatures of 31 and 41◦C, and vapor qualities from 0.10 to 0.99. Pressures drop gradients and heat transfer coefficients ranging from 1 to 70 kPa m−1 and from 1 to 7 kW m−2 K−1 were measured. It was found that the heat transfer coefficient is a strong function of the heat flux, mass velocity, and vapor quality. Five frictional pressure drop predictive methods were compared against the experimental database. The Cioncolini et al. (2009) method was found to work the best. Six flow boiling heat transfer predictive methods were also compared against the present database. Liu and Winterton (1991), Zhang et al. (2004), and Saitoh et al. (2007) were ranked as the best methods. They predicted the experimental flow boiling heat transfer data with an average error around 19%.

The Value of Negotiating Cost-Based Transfer Prices

This paper analyzes the potential of one-step transfer prices based on either variable or full costs for coordinating decentralized production and quality-improving investment decisions. Transfer prices based on variable costs fail to induce investments on the upstream stage. In contrast, transfer prices based on full costs provide strong investment incentives for the upstream divisions. However, they fail to coordinate the investment decisions. We show that negotiations prevent such coordination failure. In particular, we find that the firm benefits from a higher degree of decentralization so that total profit increases in the number of parameters being subject to negotiations.

Energy derivative market and derivative pricing via simulation

The deregulation of power industry worldwide has delivered the efficiency gains to the society; meanwhile, the intensity of competition has increased uncertainty and risks to market participants. Consequently, market participants are keen to hedge the market risks and maintain a competitive edge in the market; and this is a good explanation to the flourish of electricity derivative market. In this paper, the authors gave a comprehensive review of derivative contract pricing methods and proposed a new framework for energy derivative pricing to suit the needs of a deregulated electricity market

DEVELOPMENT OF A FAIR CHARGING MODEL FOR A PUBLIC DATA CENTER

The purpose of the study was to explore how a public, IT services transferor, organization, comprised of autonomous entities, can effectively develop and organize its data center cost recovery mechanisms in a fair manner. The lack of a well-defined model for charges and a cost recovery scheme could cause various problems. For example one entity may be subsidizing the costs of another entity(s). Transfer pricing is in the best interest of each autonomous entity in a CCA. While transfer pricing plays a pivotal role in the price settings of services and intangible assets, TCE focuses on the arrangement at the boundary between entities. TCE is concerned with the costs, autonomy, and cooperation issues of an organization. The theory is concern with the factors that influence intra-firm transaction costs and attempting to manifest the problems involved in the determination of the charges or prices of the transactions. This study was carried out, as a single case study, in a public organization. The organization intended to transfer the IT services of its own affiliated public entities and was in the process of establishing a municipal-joint data center. Nine semi-structured interviews, including two pilot interviews, were conducted with the experts and managers of the case company and its affiliating entities. The purpose of these interviews was to explore the charging and pricing issues of the intra-firm transactions. In order to process and summarize the findings, this study employed qualitative techniques with the multiple methods of data collection. The study, by reviewing the TCE theory and a sample of transfer pricing literature, created an IT services pricing framework as a conceptual tool for illustrating the structure of transferring costs. Antecedents and consequences of the transfer price based on TCE were developed. An explanatory fair charging model was eventually developed and suggested. The findings of the study suggested that the Chargeback system was inappropriate scheme for an organization with affiliated autonomous entities. The main contribution of the study was the application of TP methodologies in the public sphere with no tax issues consideration.

Deep learning based style transfer for low altitude aerial imagery

Unmanned Aerial Vehicle (UAVs) equipped with cameras have been fast deployed to a wide range of applications, such as smart cities, agriculture or search and rescue applications. Even though UAV datasets exist, the amount of open and quality UAV datasets is limited. So far, we want to overcome this lack of high quality annotation data by developing a simulation framework for a parametric generation of synthetic data. The framework accepts input via a serializable format. The input specifies which environment preset is used, the objects to be placed in the environment along with their position and orientation as well as additional information such as object color and size. The result is an environment that is able to produce UAV typical data: RGB image from the UAVs camera, altitude, roll, pitch and yawn of the UAV. Beyond the image generation process, we improve the resulting image data photorealism by using Synthetic-To-Real transfer learning methods. Transfer learning focuses on storing knowledge gained while solving one problem and applying it to a different - although related - problem. This approach has been widely researched in other affine fields and results demonstrate it to be an interesing area to investigate. Since simulated images are easy to create and synthetic-to-real translation has shown good quality results, we are able to generate pseudo-realistic images. Furthermore, object labels are inherently given, so we are capable of extending the already existing UAV datasets with realistic quality images and high resolution meta-data. During the development of this thesis we have been able to produce a result of 68.4% on UAVid. This can be considered a new state-of-art result on this dataset.

A importância dos preços de transferência interna na avaliação de desempenho

Mestrado em Controlo e Gestão dos Negócios

A utilização dos preços de transferência pelas empresas multinacionais como mecanismo de evasão fiscal

Dissertação de mestrado em Direito Tributário e Fiscal

International Corporate Taxation and U.S. Multinationals’ Behavior: an Integrated Approach

Using data from the International Revenue Service, this paper explores the effcts of corporate taxation on U.S. capital invested abroad and on tax planning practices (dividend payments, income shifting, and passive investment). The econometric analysis first indicates that investment is strongly influenced by average tax rates, with a magnified impact for particularly low-tax rates implying that the attractiveness of low-tax countries is not weakened by anti-deferral rules and cross-crediting limitations. Further explorations suggest that firms report higher profit and are less likely to repatriate dividends when they are located in low-tax jurisdictions. Firms also report higher Subpart F income in countries in which they shift their profit, suggesting that cross-crediting provides an incentive to shift passive income in low-tax countries and that passive investment can be an alternative strategy to minimize taxes when active investment opportunities are lacking. Finally, the paper estimates the role of effective transfer pricing regulation on income shifting activities using the quality of host countries' law enforcement. It appears that low degrees of law enforcement are associated with higher income-shifting.

Toimintolaskennan hyödyntäminen Kelan johtamisessa ja toiminnan ohjauksessa

Pro gradu-tutkielman päätavoite on mallintaa toimintolaskennan ja sen tulosten hyödyntämisen mahdollisuuksia Kelan johtamisessa. Tutkielma on empiirinen työ ja sen tutkimusmenetelmänä on case-tutkimus. Tutkielman doktriini koostui eritoten julkishallinnon toimintolaskentaa jatoimintojohtamista koskevasta kirjallisuudesta. Tutkielman empiirinen aineisto kerättiin haastatteluin, dokumentteja tutkimalla sekä havainnoimalla työskentelyä Kelan päätoimitalossa Helsingissä. Tutkielman perusteella Kelalla on laajat mahdollisuudet hyödyntää toimintolaskentaa johtamisessa. Hyödyntämisen mahdollisuudet voidaan ryhmitellä sisäisen laskennan tehtävien mukaisesti. Tehtävät ovat raportointi ulkoisille sidosryhmille ja tiedon tuottaminen strategiseen ja operatiiviseen johtamiseen. Ulkoisiin sidosryhmiin liittyviä mahdollisuuksia ovat tulosten raportointi, rahoituksen uudistaminen, lainmuutoskustannusten arviointi sekä muilta organisaatioilta ja asiakkailta veloitettavien palveluiden hinnoittelu ja hintojen perusteleminen. Strategiseen ohjaukseen liittyviä mahdollisuuksia ovat tulosohjauksen kehittäminen, investointilaskelmat sekä ulkoistamispäätökset. Operatiiviseen ohjaukseen liittyviä mahdollisuuksia ovat puolestaan prosessien analysointi ja kehittäminen, benchmarking, sisäinen hinnoittelu ja tulosten viestiminen henkilöstölle. Sekä strategiseen että operatiiviseen ohjaukseen liittyviä hyödyntämisen mahdollisuuksia ovat resurssien käytönseuranta ja tehostaminen, työn tasauksen kehittäminen sekä suorituksen mittaaminen.

Toimintolaskennan hyväksikäyttö talouspalvelukeskuksen kustannusten kohdentamisessa

Tässä tutkimuksessa tutkittiin kustannuslaskennan,erityisesti toimintolaskennan hyväksikäyttöä talouspalvelukeskuksen kustannusten jakamisessa asiakasyhtiöille. Tavoitteena oli saada aikaan mahdollisimman selkeä, mutta kuitenkin riittävän yksinkertainen järjestelmä, jolla talouspalvelukeskuksen kustannukset kohdistetaan asiakkaille. Toinen päätavoite oli selvittää, soveltuuko toimintolaskenta talouspalvelukeskuksen tai palveluyrityksen kustannuslaskenta järjestelmäksi. Teoriaosassa on useita eri teoreettisia lähtökohtia kustannusten jakamiseen. Teoriaa on perinteisestä kustannuslaskennasta, toimintolaskennasta, laatukustannuslaskennasta ja siirtohinnoittelusta. Pääpaino on toimintolaskennassa, erityisesti toimintolaskennan hyväksikäytöstä palveluyrityksissä. Empiriaosuudessa näistä teoreettisista raameista rakennetaan malli, jolla kohdeyrityksen, Finnair Financial Services yksikön kustannukset jaetaan konsernin yhtiöille, talouspalvelukeskuksen asiakkaille. Syntynyt malli on pääpiirteissään perinteistä kustannuslaskentaa, lisäyslaskentaa Vaikka toimintolaskenta teoreettisesti soveltuu yhtä hyvin niin palvelu kuin valmistusyrityksiinkin, se ei sovellu pienille yksiköille. Tämän tutkimuksen tuloksena voidaan todeta, että toimintolaskentajärjestelmä on liian raskas talouspalvelukeskuksille ja tilitoimistotyyppisille yksiköille ja yrityksille, mutta muuten soveltuu hyvin suurten yleiskustannusten jakamiseen. Kohdeyksikössä on noin 50 työtekijää ja toimintolaskennan rakentaminen tähän yksikköön ei ole taloudellisesti järkevää. Toimintolaskennan soveltuvuudesta tai soveltumattomuudesta palveluyrityksiin ei voi tämän tutkimuksen perusteella ottaa kantaa.

Terästuotteiden hinnaston uudistaminen

Työn tavoitteena oli uudistaa Rautaruukki Steelin terästuotteiden hinnasto päätuotteiden osalta. Rautaruukki Steelin päätuotteita ovat kuuma- ja kylmävalssatut, kuumasinkityt ja maalipinnoitetut Raahen ja Hämeenlinnan tehtaiden tuottamat terästuotteet. Ensin selvitettiin tuotantohyödykkeiden hinnoittelua ja eri hinnoittelumenetelmiä kirjallisuuden avulla. Tämän jälkeen selvitettiin hinnaston nykytilaa ja uudistetun hinnaston tavoitteita. Hinnaston uudistamisessa käytettiin apuna kilpailijaseurantaa kahden tärkeimmän kilpailijan osalta, paperiteollisuuden benchmarkingia sekä myyntihenkilöstön ja asiakkaiden haastatteluja. Lopuksi perehdyttiin tuotanto- ja kustannusrakenteeseen. Hinnaston uudistamisen taustalla ovat yrityksen strategia- ja teräsmarkkinoiden muutokset. Teräksen hinnoittelu voi olla nyt vapaampaa ja harmonisoiduista hinnastorakenteista ja yhtenevistä perushintaan perustuvista hinnoista voidaan siirtyä kohti Rautaruukin omia tuotanto- ja kustannusrakenteita vastaavaan hinnoitteluun. Hinnaston uudistuksella pyritään myös läpinäkyvyyden ja vertailtavuuden häivyttämiseen. Lisäksi taustalla on brandituotteiden aseman vahvistaminen ja kannattavuuden nostaminen. Perushintapohjaisesta hinnoittelusta kokonaan luopuminen kaatui suurimmaksi osaksi myyntihenkilöstön vastustukseen, jonka vuoksi hinnasto jaettiin kahteen osaan: standardituote- ja brandituotehinnastoihin. Standardituotteiden hinnoittelussa pitäydyttiin nykyisen kaltaisessa kilpailijasuuntautuneessa hinnoittelussa, kun taas brandituotteiden hinnoittelussa sovellettiin markkinalähtöistä efektiivihinnoittelua.

Budjetointilaskentajärjestelmän uudistaminen ja raportoinnin kehittäminen, Case: UPM-Kymmene Oyj, Kaukas, keskuskunnossapito

Tutkielman tavoitteena oli uudistaa ja kehittää UPM-Kymmene Oyj:n, Kaukaan tuotantoyksikköön kuuluvan keskuskunnossapidon budjetointilaskentaa sekä talousraportointia. Lisäksi työssä ehdotetaan keskuskunnossapidon sisäisten suoritteiden hinnoitteluperiaatteiden muuttamista toimintoperusteista laskentaa vastaavaksi. Työssä on kuvattu keskuskunnossapidon budjetointilaskennan ja raportoinnin nykytila, selvitetty lähtökohdat työlle sekä määritelty tavoitetilat, jotka halutaan saavuttaa uudistuksen jälkeen. Työ on toteutettu kuvailevasti ja analyyttisesti konstruktiivista tutkimusotetta hyväksi käyttäen. Tuloksena esitetään entistä hallittavampi ja informatiivisempi talouden ohjausjärjestelmä, jossa sisäisen laskennan uudistukset saavat käsitteellisen perustan kirjallisuudesta.