Thursday, June 20, 2013 5:00 PM / @webtv-ng
With the increasing pace of businesses across the globe with multilateral and bilateral trade relations amongst nations, driven extensively by the operations of Multinational enterprises, the need for stability in the regulations transactions came to the fore of the June edition of the breakfast meeting of the Nigerian-South African Chamber of Commerce and Industry (NSACC) at the Eko Hotels & Suites, Lagos.
Powered by the leading auditing firm in the globe KPMG, who had as guest speaker for the event, its Head, Tax Regulatory and People Services, Nigeria Mr Tayo Ogungbenro. He gave insight to the topic ‘Transfer Pricing: Concepts and Processes’ with several illustrations and presentation at the meeting.
Mr Ogungbenro stressed that at a time when cross-border activity is on the rise, fiscal authorities have been facing the significant challenge tracking economic activities within their territories and harnessing the benefits, thereof to stimulate growth of local economies.
He also asserted that considering the value ‘Transfer Pricing’ brings to both the taxpayers and the tax administrators, the Organization of Economic Co-operation and Development had come up with a guideline and modem to guide the process, in a favourable manner that will be devoid of rancour especially in the case of taxation of transactions of multinationals in host countries.
Transfer Pricing by design is a product of globalization and international trade. It also creates an avenue for tax authorities of virtually all major countries to focus on a mechanism for the protection of their tax bases and as a means of ensuring that a reasonable basis is employed to identify and extract economic benefits.
Based on this, Mr Ogungbenro hinted that steps had already been taken in Nigeria to fully implement the operations of ‘Transfer Pricing processes’ as the Federal Inland Revenue Service (FIRS) had given out circulars to stakeholders, communicating their plans, which is to take effect in the next one year.
This informed the need for Multinationals in Nigeria to buckle up and set their financial operations in order, so as to meet the expectations of the guidelines and provisions of the ‘Transfer Pricing’ methods when fully implemented in the country.
The very technical but revealing session had in attendance members of the Nigerian-South African Chamber of commerce, including the Chairman Mr Foluso Phillips, Mr Ebun Sonaiya Director-General, Mr Ajibola Olomolo Senior Partner KPMG and Mrs Toyin Cameron Executive Secretary of the chambers.