The Role of Accountants in Managing Transfer Pricing Tax Audits

The understanding by Accountants of their roles in managing transfer pricing tax audits conducted by the tax authority is very important given the Government focus on tax collections for economic development and its zero-tolerance on non-compliance with tax laws. Recently, the Minister for Finance and Planning emphasized through budget speech that transfer pricing compliance monitoring will be intensified by TRA as part of the Government measures to ensure effective tax collection.

 

When transfer pricing audits are not properly managed, they can be costly to taxpayers and the Government (both in terms of money (through interest and penalties) and time. Protracted transfer pricing audits can be costly to the Government through tying up a significant amount of tax collections which may be properly due. Practical experience has shown that improperly managed transfer pricing audits can sometimes take over a year to conclude. Thus, it is imperative for Accountants to have a thorough knowledge on transfer pricing tax audits, areas of focus during the audits and techniques to manage transfer pricing  tax audits to avoid interest and penalties and ensure timely completion so as to both minimize financial losses to their entities and at the same time enable the Government to timely collect its fair share of tax for national development.

 

Given their background and their roles in Organisations, Accountants have a significant role to play in helping their Organisations and the Government on effective management of transfer pricing tax audits.

The presentation below in the NBAA-TRA joint Tax Seminar in July 2021 discussed the scope of transfer pricing audits, the key focus areas by TRA when conducting transfer pricing tax audits and the role Accountants can play in ensuring a transfer pricing tax audit is properly managed to minimize tax exposures.

 

Download the presentation here 👉 The Role of Accountants in Managing Transfer Pricing Audits

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