Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘Ghana transfer pricing’

Ghana’s TP risk approach: Best Practice ideas

EY’s Global Tax Alert highlights the 250 risk-based transfer pricing (TP) audits that commenced recently, as well as the relevant risk factors and transfer pricing submission details that are useful in determining transfer pricing risk currently and ongoing.  The Transfer Pricing Unit of the Ghana Revenue Authority was established in September 2012, highlighting the focus that this Unit has placed on gaining access to transfer pricing information from which a risk-based approach can be implemented.

Click to access 2015G_CM5216_TP_Ghana%20commences%20TP%20audits.pdf


  • Transfer Pricing disclosure return (due 4 months after year-end):
    • Related party transactional overview and values
    • Location of related parties
    • Arm’s length pricing methodologies
  • Transfer pricing risk factors (Yes / No format):
    • Intercompany transactions to / from Ghana
    • Intercompany transactions with low-tax jurisdictions
    • Other transactions
    • Local restructurings
    • Senior management secondments
    • Operating losses for 2 years or more
    • Royalties
    • Compliance with transfer pricing returns
    • Contemporaneous transfer pricing documentation

Best Practice points / learnings from Ghana’s approach:

  • Would a risk-based jurisdictional template be useful to compare other jurisdictions similarly to address potential risks
  • Focus on location of senior management highlights the use of a significant people function approach, highlighting coordination with the global mobility function and providing relevant rationales to justify the local benefit
  • Location of related parties and transactions with low-tax jurisdictions may require further disclosure in transfer pricing documentation to address perception-based conclusions
  • Necessity for local transfer pricing knowledge, with internal / external resources to answer questions accurately

Global Transfer Pricing Requirements: PwC insightful resource

An informative and valuable reference is provided by PwC that offers country specific recent transfer pricing legislation, in addition to a link for a tax summary of that country.  A separate link is also provided to sign up for transfer pricing e-bulletins.  A transfer pricing article from the perspective of Ghana and Africa is also provided for reference.

Recent transfer pricing news, available by a selection of the relevant country, is always helpful in this ever-changing and challenging world.

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