CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. South Africa Urges African Transfer Pricing Advances

South Africa Urges African Transfer Pricing Advances

by Lorys Charalambous, Tax-News.com, Cyprus

20 July 2016


During a recent speech in Pretoria to the High Level Conference on Illicit Financial Flows, South African Minister of Finance Pravin Gordhan noted that tax code improvements are required in African countries so that multinational enterprises (MNEs) "pay their fair share of taxes in the countries where they generate their profits."

On the subject of "transfer mispricing and other practices" by MNEs in Africa, which "result in a substantial erosion of a country's tax base," he commented that, although MNEs must also "take active steps to stop aggressive tax structuring practices, … there is a need to strengthen tax legislation."

"South Africa's transfer pricing legislation was first introduced in 1995 and we are still building our capacity in this regard some twenty years later," Gordhan pointed out. "The journey has had its successes, with several adjustments to transfer prices in excess of ZAR1bn (USD70m) each."

In addition, he noted that "the use of complex ownership structures is now the most commonly-used means of hiding ownership and control of assets. It is in the interest of Africa that we quickly develop our capacity to implement the concept of beneficial ownership."

International cooperation and coordination are also key, he added, with implementation of "the OECD's Common Reporting Standards, for example, facilitating global transparency and the exchange of information for tax purposes."

TAGS: South Africa | compliance | tax | business | tax information exchange agreement (TIEA) | tax compliance | interest | corporation tax | multinationals | legislation | transfer pricing | Africa

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »