Mining companies in Zambia are still able to limit their taxable profits in the country, despite transfer pricing legislation, through undervaluing metals and minerals that are not traded on the global market.
Researchers from Australia’s RMIT University have blamed multinational companies for the largest proportion of Australia’s tax leakage through their transfer pricing operations.
Globally recognised as the best way to control companies’ transfer pricing between related-entities; opposition to the arm’s-length principle (ALP) is growing.
Multinational companies say transfer pricing is their greatest concern in international tax so it is important for the head of tax to communicate with the company’s chief financial officer (CFO) and higher management to develop the company’s strategy in this area.
The theme of this week's IMF and World Bank Spring Meetings is closing the gap (including financial, gender and jobs, etcetera) so tax and transfer pricing are expected to come up during the discussions between the 137 affiliated countries.
