Ministry of Finance holds workshop on transfer pricing

Ministry of Finance

The Ministry of Finance and Economic Planning in collaboration with the Ghana Revenue Authority and the German Development Organisation (GIZ) is drafting transfer pricing regulations to guard against the use of the mechanisms for profit shifting by Multinational Enterprises (MNEs).

Transfer pricing is a tax avoidance scheme that MNEs carefully adopt to maximise profit after tax incomes.

The transfer pricing regulations are intended to ensure transparency,  disclosure and documentation of economic activities by the MNEs.

In this connection, a five-day training programme on transfer pricing for the Ghana Police Service, Judiciary, Economic and Organised Crime Committee and members of the transfer pricing core group opened in Accra on Monday and aimed to equip the selected institutions with the requisite knowledge in transfer pricing issues regarding its critical impact on the country’s revenue.

Mr Edward Siaw, Tax Policy Adviser at the Ministry of Finance, said  transfer pricing among multinational companies on market price basis, did not in itself constitute a tax avoidance and evasion scheme, however manipulations of transfers among the MNEs were of serious tax concerns for government.

He said the understanding of the issues involved in transfer pricing by the Police Service, the Judiciary and the Economic and Organised Crime Office would go a long way to enable them play their role very well in assisting in tax administration.

Mr Colin Clavey, Senior Tax Advisor, Global Relations OECD Centre for Tax Policy and Administration, said transfer pricing legislation allowed countries to tax a fair shares of profits on cross border transactions whilst minimising risk of double taxation.

He said the use of transfer pricing had encourage international trade and investment.

Some of the topics lined-up for discussion are the objectives of transfer pricing legislation, typical content of transfer pricing legislation, international and treaty aspects.

Source: GNA

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