Unlocking Economic Prosperity: Interview with Akash Kalra on the Strategic Role of Transfer Pricing in Developing Nations for Sustainable Economic Growth

CEOWORLD magazine: Today, we have the pleasure of speaking with Akash Kalra, whose work and research have been making waves in the field of international economics and sustainable development. Akash, thank you for joining us. 

Akash Kalra: Thank you for having me. It’s a pleasure to be here.

CEOWORLD magazine: Your recent research delves into the impact of transfer pricing regulations on developing nations. Could you give us a brief overview of your findings? 

Akash Kalra: Certainly. My research published in International Trade, Politics and Development (a peer-reviewed journal by Emerald Insight) focuses on how transfer pricing regulations, when properly implemented, can do more than just prevent tax evasion. They can actually contribute to the economic prosperity of developing nations by ensuring that tax revenues are fairly distributed according to where economic activities take place, leading to worldwide sustainable economic growth.

CEOWORLD magazine: That’s quite insightful and likely ground-breaking. What inspired you to explore this particular aspect of transfer pricing? 

Akash Kalra: I’ve always been interested in the intersection of transfer pricing and sustainable economic growth. Transfer pricing stood out to me as an area where there’s a significant gap between the potential benefits and the current outcomes, especially in developing countries. I wanted to explore how we could bridge that gap.

CEOWORLD magazine: In your research, you emphasize the importance of transparency and information sharing. Why are these factors so crucial? 

Akash Kalra: Transparency and information sharing are the bedrock of effective transfer pricing regulations. Without them, tax authorities in developing nations are often left in the dark about the true nature of transactions between related entities of MNEs. This makes it incredibly difficult to assess and collect the right amount of tax revenue.

CEOWORLD magazine: How do you suggest developing nations enhance their capacity to enforce these regulations? 

Akash Kalra: It’s a combination of adopting international best practices, investing in training for tax officials, and leveraging technology to analyze and manage data. International cooperation is also key, as developed countries can provide support and share their expertise.

CEOWORLD magazine: Your work also touches on the alignment of operational structures with economic value creation. Can you expand on that? 

Akash Kalra: Sure. Essentially, the idea is that transfer prices should reflect the true value of what’s being exchanged. This means that profits are reported and taxed in the jurisdictions where the actual value is created, rather than being artificially shifted to low-tax environments. It’s about aligning the tax outcomes with the economic reality.

CEOWORLD magazine: What do you see as the biggest challenge for developing nations in implementing these regulations? 

Akash Kalra: One of the biggest challenges is the lack of resources, both in terms of skilled personnel and technology. There’s also the issue of political will, as implementing these regulations can sometimes be met with resistance from powerful stakeholders.

CEOWORLD magazine: Finally, what impact do you hope your research will have on policy and practice? 

Akash Kalra: I hope it will encourage policymakers and tax authorities in developing nations to view transfer pricing regulations not just as a tool for tax compliance, but as a strategic lever for economic development. By adopting a more holistic approach, they can harness the full potential of these regulations to support sustainable growth and prosperity.

CEOWORLD magazine: Akash, thank you for sharing your insights with us today. Your research certainly provides a fresh perspective on the role of transfer pricing in sustainable economic growth. 

Akash Kalra: Thank you for the opportunity to discuss my work. I look forward to seeing how it contributes to the ongoing dialogue in this field.

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