UK launch of “Preventing Tax Base Erosion in Africa: a Regional Study of Transfer Pricing Challenges in the Mining Sector,” a report recently published by the Natural Resource Governance Institute.
The event will include a presentation of the report, discussed by a panel of five experts from African tax administrations, international mining companies and civil society groups, followed by an open debate and a short cocktail reception.
London, October 17th. To register for the London launch, please contact Rosemary Ademoroti at [email protected] +44 (0) 207 747 6345 ASAP.
Please note that an Oxford launch is organized on October 18th, at 1PM.
Venue : Blavatnik School of Government, Seminar Room 4. Radcliffe Observatory Quarter.
To register for the Oxford launch, please contact Rosemary Ademoroti at [email protected] or +44 (0) 207 747 6345.
The report is a product of a collaborative project of the NRGI, a non-governmental organisation that helps people to realize the benefits of their countries’ endowments of oil, gas and minerals, 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.