UK Charity Examines Aggressive Transfer Pricing’s Effect on Third World

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UK-based charity ActionAid outlines the effects that multinational’s aggressive transfer pricing policies have on developing nations in the October issue of BNA International’s Transfer Pricing International Journal. ActionAid policy adviser Martin Hearson says that NGOs “have been highlighting for some time a state of affairs in which we believe that developing countries’ tax policy and administration frameworks are not adequately protecting them from aggressive tax planning by multinational companies.”

UK-based charity ActionAid outlines the effects that multinational’s aggressive transfer pricing policies have on developing nations in the October issue of BNA International’s Transfer Pricing International Journal.

ActionAid policy adviser Martin Hearson says that NGOs “have been highlighting for some time a state of affairs in which we believe that developing countries’ tax policy and administration frameworks are not adequately protecting them from aggressive tax planning by multinational companies.”

He notes that ActionAid’s research on an international brewing company exposed their use of management fees, royalty payments and tax efficient supply chain management techniques to shift as much as £100m of taxable profit per year off the African continent, lowering its tax bill there by an estimated £20 million. Hearson says that there is a business case, as well as an ethical one, that where tax laws are inadequately drafted and administered, compliance with the legal minimum alone is not sufficient to insulate a business from the risks associated with aggressive tax planning.

ActionAid have claimed that campaigners are likely to increase their efforts to draw attention to multinationals’ tax planning in Africa, both to try to force behaviour change and to highlight areas where tax law and administration should be improved.

BNA International’s Transfer Pricing International Journal provides authoritative commentary and practitioner analysis on transfer pricing issues world-wide. Written by leading specialists, it contains comprehensive details of taxation and economic issues involved in preparing a successful transfer pricing strategy. It is the foremost resource for practical transfer pricing analysis.

Transfer Pricing International Journal is part of the BNA International Tax Centre. Find out more and access your free online trial (where you can read the ActionAid article) at http://www.bnai.com/itax. To request a print copy of the October issue of Transfer Pricing International Journal please call +44 (0)207 847 5801.

Here's why Transfer Pricing International Journal is so useful:

  • Use its detailed, expert analysis of legislative developments in transfer pricing regulation to understand new legislation and its impact on business.
  • Refer to practical news and analysis to help you minimise tax liability and avoid time consuming investigations and costly penalties.
  • Benefit from incisive guidance provided by expert practitioners who know the key issues you face. Brief clients and colleagues with confidence.

Major topics covered include:

  • Advance pricing agreements
  • Arbitration
  • Arm's length price
  • Audits
  • Comparables
  • Competent authority
  • Compliance
  • Cost sharing
  • Customs
  • Documentation
  • Earnings stripping
  • Enforcement
  • Exchange of information
  • Guarantee fees
  • Intangibles
  • Intercompany loans
  • IP
  • Legislation
  • Litigation
  • Marketing intangibles
  • M&A
  • Penalties
  • Permanent establishment
  • Personnel
  • Pricing methods
  • Regulation
  • Recharacterisation
  • Restructuring
  • Risk Management
  • Services
  • Thin capitalisation

About BNA International

BNA International (http://www.bnai.com) helps companies and their advisers operate successfully in global business. It provides international information for international business. Use BNA International's services to obtain accurate news and detailed analysis of worldwide legal developments in the following core areas:

  • International tax
  • IP, communications and technology
  • Business and finance

Media Contact:

John Martinez:
+ 44 (0)20 7847 5822

Transfer Pricing International Journal Editor:

Lillian Adams
+ 44 (0)20 7847 5812

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John Martinez
BNA International
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