Transfer pricing enables multinational corporations, including Google and Starbucks, to pay little tax in some countries in which they operate THE South African Revenue Service (SARS) lacks the capacity to deal effectively with the abuse of transfer pricing, which drains billions of rand from the economy, Judge Dennis Davis, who heads a tax review committee, said in Parliament on Wednesday.The tax authority is also not provided with sufficient information by taxpayers to allow it to probe cross-border transactions to determine whether they involved the illicit transfer of profits from high-tax to low-tax regimes.The abuse of transfer pricing is of concern to governments worldwide. It has enabled multinational corporations, including Google and Starbucks, to pay little tax in some countries in which they operate.Judge Davis told members of Parliament’s trade and industry committee during a hearing on transfer pricing that there is "considerable haemorrhaging of money" out of SA as a ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.