Ernst & Young organises workshop on transfer pricing
Ernst and Young, Ghana, an Accounting firm in tax transactions and advisory services on Tuesday organised a workshop on transfer pricing for companies in Accra.
The workshop was aimed at providing and equipping the companies the requisite knowledge on the importance and risks associated with transfer pricing.
Transfer pricing is a tax avoidance scheme that multinational enterprises carefully adopt to maximise profit after tax incomes.
Government has drafted transfer pricing regulation to guard against the use of the mechanisms for profit shifting by multinational enterprises.
Madam Amanda Layne, Manager, International Tax and Service Transfer Pricing said it was important for companies to understand the issues concerning transfer pricing in Ghana.
She said the focus of the discussion was on the implication for taxpayers, operating in Ghana and other African countries.
She called on business owners to ideally use value chain approach to overcome transfer pricing.
Mr Patrick Oparah, Associate Director, Tax Services, said Ghana and Nigeria have had the opportunity to learn about best practices in the area of transfer pricing.
He said this would give the country the opportunity to really enforce transfer pricing regulations.
He said the transfer pricing regulations were intended to ensure transparency, disclosure and documentation of economic activities by the multinational enterprises.
Mr Oparah said the greatest challenges facing the implementation of the regulations were resources and dedication from authorities.
Participants were taken through topic including Transfer Pricing Risk Factors; Transfer Pricing Documentation and Policy; Annual Transfer Pricing Return and Permanent Establishment Risks in Ghana.