Tax administration experts from 22 African countries were brought together on Monday in Dakar in a seminar to discuss transfer pricing, upon the initiative of the Exchange and studies center on tax administrations (CREDAF), in partnership with OECD.Transfer pricing refer to the internal transfer of prices between companies of the same group established in different tax jurisdictions.
This five-day seminar is an extension on transfer pricing organized in Dakar in March 2014 and in Libreville in February 2015. It will be an opportunity to deepen the reflection on transfer pricing issue through various presentations on the matter, risk assessment and the protection of tax regimes, explained Didier Cornillet, CREDAF Secretary General.
Cornillet added that the meeting will be â€œan opportunity to discuss on how to further share information with regards to tax between tax collection experts and to determine the actual tax status of taxpayers.
According to Birima Mangara, Senegal’s Budget minister, who presided over the opening of the seminar, the transfer price became an important issue for tax administrations.
In the context of the globalization of economies and increasing tax competition with intra-group trade becoming a significant part of world trade, transfer pricing has become a major challenge for tax administrations which consider it risk point for the State’s tax recipes. Mangara declared.