Patent ID: 7716104

Claim:
A computer-implemented method for identifying entities that have avoided a state corporate income tax, the method comprising: performing with a computer: searching state corporate income tax data for a plurality of entities for an indicator that one or more of the entities is engaging in controlled transactions; identifying, as a result of the searching, at least one entity that is likely to have engaged in controlled transactions; and performing a transfer pricing analysis with respect to the at least one entity, wherein the transfer pricing analysis comprises: determining, from state corporate income tax data for the at least one entity, a ratio of operating profit to sales for the at least one entity; determining an industry for the at least one entity; determining ratios of operating profit to sales for a plurality of other entities in the industry; comparing the ratio of operating profit to sales for the at least one entity to the ratios of operating profit to sales for the other entities in the industry; and determining, as a result of the comparing, that the at least one entity is likely to have avoided a state corporate income tax.