Some of the methods used by foreign companies in transfer pricing

TP SA recently changed its logo to one incorporating elements of the logo of its strategic investor France Telecom (FT) and it is now paying FT 0.06% of its annual revenues for the right to use the logo, reveals Gazeta Wyborcza. This is just one of the hundreds of ways in which foreign owners transfer money from their Polish subsidiaries and avoid paying income taxes in Poland. For example, TP SA is also choosing contractors affiliated with FT for its various projects. Foreign banks are also receiving substantial payments from their Polish subsidiaries - for example last December BZ WBK paid zł.15.5 million as a first installment for IT services to its strategic shareholder, Allied Irish Banks. Meanwhile, Bank Handlowy is set to pay as much as zł.65 million this year to Citibank for advisory services and the use of its Internet transaction service. (Gazeta Wyborcza, p. 20) T.J.