This Day (Lagos)

Nigeria: 'Enforcement of Transfer Pricing Will Reduce Fiscal Deficit'

The enforcement of Transfer Pricing (TP) regulations in the Nigeria will provide the country the means to reduce fiscal deficits through collection of transfer pricing adjustments and taxes.

TP regulation, which became effective in the country since August 2, 2012, refers to the setting, analysis, documentation, and adjustment of charges made between related parties for goods, services, or use of property (including intangible property).

Partner and Transfer Pricing Leaders, KPMG, Ms. Teresa Quinones, stated this while speaking on 'Transfer Pricing: Concepts, Issues and Challenges,' at a TP breakfast seminar organised by KPMG in Lagos.

According to her, in most emerging markets in Africa, a lot of tax authorities have been giving attention to TP since last decade. "This is not surprising if we consider the astronomical growth in the amount of cross-border transactions in the continent. Business expansion into Africa can be seen in the volume of exports out of Africa, surpassed only by those from Asia," she added.

A report by KPMG also showed that economists had predicted that the pace of growth in Africa would overtake Europe, the Middle East and North America. It further stated already, a lot of African countries have implemented TP rules which allow tax authorities to adjust prices of related-party transactions. It listed some of these African countries to include South Africa, Kenya, Uganda, Egypt, Ghana, Benin and Zambia.

Ads by Google

Copyright © 2012 This Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.