(http://peoplesdailyng.com/wp-content/uploads/2013/06/Acting-Executive-Chairman-Federal-Inland-Revenue-Service-FIRS-Alhaji-Kabir-Marshi.jpg) (http://peoplesdailyng.com/wp-content/uploads/2013/06/Acting-Executive-Chairman-Federal-Inland-Revenue-Service-FIRS-Alhaji-Kabir-Marshi.jpg)By abdulwahab Isa
Nigeria is no going back on full implementation of Transfer Pricing regulations and its implementation, Acting Executive Chairman, Federal Inland Revenue Service( FIRS), Alhaji Kabir Marshi, has declared.
He said that FIRS was ready to work with the business, community and multinationals to smoothen, rough edges and explain grey areas.
His no going back commitment on Transfer Pricing regulations, came as tax experts and multinational taxpayers, gathered over the weekend in Lagos to examine issues that impinges on Transfer Pricing implementation modalities.
A statement issued by FIRS Director of public Communications Emmanuel Obeta quoted Marshi saying that implementation of TP was key to achieving Nigeria's economic prospect of vision 202020.
"We are not here to discuss whether there will be Transfer Pricing or not
because there is going to be Transfer Pricing. We are not even going to discuss when to start implementation because we have agreed that it will start at the beginning of this year. We are here to talk to ourselves on the progress we have made on the implementation of TP and assure ourselves that we are ready to work with the business community", Mashi said.
Transfer pricing is a profit allocation method used to attribute a corporation's net profit or loss before tax to tax jurisdictions.
It refers to the setting, analysis, documentation, and adjustment of charges made between related parties for goods, services, or use of property (including intangible property).
OECD Transfer Pricing Guidelines, according to Wikipedia states thus:, “Transfer prices are significant for both taxpayers and tax administrations because they determine in large part the income and expenses, and therefore taxable profits, of associated enterprises in different tax jurisdictions.†Over 60 governments have adopted transfer pricing rules
Mashi, who was represented by the Coordinating Director, Field
Operations Group, FOG, Mr. Samuel Ogungbesan, urged the drivers of the
TP implementation to work hard to surmount any challenge on the full
realization of the TP.
Mashi said that a lot of effort have been put in the TP project
including involving the United Nations and tax professionals bodies
like the Institute for Chartered Accountants of Nigeria, ICAN, Association of national Accountants of Nigeria, ANAN, PricewaterhouseCoopers, PwC among others who have assisted to position TP regulation to it's present level in Nigeria.
In his paper titled "Transfer Pricing Regulations Development and
Implementation in Nigeria", the Director, Large Tax Department (Oil
and Gas) Ajayi Bamidele said TP regulations have come to stay.
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They are very fond of saying that and at the end of it all they would just go back. Things really happen in this country.