Business News of Thursday, 28 February 2013
A specialised unit mandated to handle transactions relating to transfer-pricing regulations among multinational corporate entities operating in the country has been established by the Ghana Revenue Authority (GRA).
“We have trained professionals whose mandate will be to monitor transfer-pricing dealings in the country’s corporate sector. It is a major problem within our tax regime.
“If we revealed the monies that are being transferred every day by these multinationals operating in the country, you would weep for Ghana,” said Nana Kwame Apenteng, Deputy Commissioner of the Large Taxpayers Office (LTO).
“Under the transfer-pricing regulations approved last year, multinational companies that transact business with other subsidiaries will be required to keep the records of such transactions to help the GRA in determining their taxable incomes,” he told B&FT after a seminar for large taxpayers in Accra to enhance education on the requirements for transfer-pricing regulation and Commissioner-General’s Practice Notes.
The aim of the seminar was to ensure that taxpayers, especially the multinational companies, are well-informed about the processes for filing their taxes. He said the Commissioner-General’s Practice Notes will help the companies at each stage of the filing process.
“The Commissioner’s Practice Notes have come as guidelines to bring sanity into the system. It also empowers the Commissioner to deal with defaulters beyond the borders of Ghana.”
He said the regulations provide a series of transfer-pricing methods that the companies will be allowed to choose from, adding that it is therefore necessary to look at the law and the interpretations.
He also revealed that GRA is taking the necessary steps to ensure that education and information, which is one major challenge hampering collection of revenue from the large taxpayers, is dealt with.