Africa Tax Conference 2012
Day two of the Ernst & Young Africa Tax Conference got underway with a plenary on Transfer Pricing, ‘Transfer Pricing across Africa : rhetoric or reality?’, one of the major topical issues on the African tax landscape today. Karen Miller, Africa sub-area Transfer Pricing leader for Ernst and young opened the plenary by giving an overview of what was to be discussed; topics ranging from Transfer Pricing as the single most important international tax issue from the perspective of both multinationals and African tax authorities,.
Next it was Monique Van Herksen, Global Head of Transfer Pricing controversy for Ernst & Young, who gave an overview of the new United Nations practical manual on Transfer Pricing and its functions. This was followed by a panel discussion on the development of Transfer Pricing and the latest developments on the continent.
The key message that came through from the discussions was succinctly summarised by Karen, when she said, ‘Transfer Pricing is a reality in Africa. If one looks at the progression in the last three years it can be seen that there has been advancement from countries such as Uganda who are already implementing Transfer Pricing regulations and taking it very seriously. The implementation is so strict that the Ugandan Revenue Services level stern penalties such as imprisonment against those who do not comply.’
Various sessions continued throughout the day focusing on topics such as the reform of tax legislation's in various African countries to discussions on fiscal stability agreeements.
Jim Deiotte, in his closing remarks, thanked all that took time out to attend and said, 'I am impressed with the level of discussions that have been happening here the past two days. The issues we are dealing with are complex and there are no simple solutions, but we will progress if we continue on the path paved with constant dialogue.'
He concluded by wishing everyone a safe return back and hoping to see them all at the 10th Africa Tax Conference in 2013.
Read more on Transfer pricing in Africa and additional coverage from the conference.