Preventing Tax Base Erosion In Africa Paper Launch in Washington, D.C.

Please join us for the presentation of Preventing Tax Base Erosion in Africa: a Regional Study of Transfer Pricing Challenges in the Mining Sector. The presentation will take place at NRGI’s office at Open Gov Hub, 1110 Vermont Ave NW #500 Washington, D.C., 20005 on 10 November 2016 at 12:30 p.m. A light lunch will be served.
 
The event will include a presentation of the report, followed discussed by a panel of experts, followed by an open discussion. To register, please contact Nicole Pepin at [email protected].
 
The report is a product of a collaborative project of NRGI and independent researcher Alexandra Readhead.
 
The Africa Progress Panel has identified cross-border transactions between related parties as a major threat to the tax base of African countries. One of the principal vectors of losses in these transactions is “transfer pricing,” which occurs when one company sells a good or service to another related company. Because these transactions are internal, they are not subject to ordinary market pricing and can be used by multinational corporations to shift profits to low-tax jurisdictions, depriving developing country governments of much-needed tax revenues.
 
This collection of work, consisting of a report and five country case studies, assesses the development and implementation of rules to monitor transfer pricing in the mining sector in Ghana, Guinea, Sierra Leone, Tanzania and Zambia.
 
This work sets out a number of recommendations that would help the five case study countries, as well as other countries facing similar challenges, to better address transfer pricing risks in the mining sector through the application of the “arm’s length principle” and alternative tax policy rules.