Kenya enacted a new law targeting units of foreign companies that escape remitting most of their domestic taxes by allocating income to tax havens while attributing expenses to the East African nation, a practice known as transfer pricing.
The South African Revenue Service (Sars) has published additional record-keeping requirements for large multi-national companies which they will have to comply with in future.
The disagreement between the IRS and the software giant centered on compliance with the federal tax code, specifically, the agency was looking into the company’s transfer pricing practices. A major concern in establishing the tax liability of multinational corporations, transfer pricing refers to the sale of goods and services between entities that are part of the same corporate structure.
Discrepancies between the Treasury and the engineering group headed by José Lladó obey the tax transfer pricing model used in international projects.
As concrete measures , the document proposes the introduction of a common consolidated base of corporate tax , the VAT revisision and imposing multinational to communicate their sales and profits country by country.