Africa seeks ways to improve transfer pricing audits

The move is partly aimed at boosting the countries revenue resource by attracting more tax from activities of multinational firms operating on the continent. Transfer pricing is the cost charged by a unit of a conglomerate for goods and services it provides to another in the same company.

A letter inviting the African tax administrators states that the meeting is designed to promote and facilitate mutual cooperation among African administrators, through the sharing of experience and expertise in transfer pricing. The invitation has been extended by Oupa Magashura commissioner for the South African Revenue Service (SARS) and Ashraf Al Arabi the commissioner Egyptian Tax Authority, to members of the African Tax Administration Forum (ATAF).

ATAF is a 28 member body comprising of tax administration bodies from countries including; Uganda, South Africa, Senegal, Ghana, Morocco, Chad, Sudan, Egypt and Mauritania among others.

The event which will be held between the 14 and 25 February 2010, has been organised by ATAF in cooperation with the Egyptian Tax Authority (ETA) and the organisation for Economic Cooperation and Development.