Tax expert urges Ghana to effectively implement transfer pricing regulations
Dr Josh Bamfo, the Partner and Head of Transfer Pricing Services, Andersen Tax, Nigeria, has urged Ghana to ensure that the existing regulations and laws on transfer pricing were effectively implemented.
This would be in line with government’s role of creating an enabling environment for businesses, have more foreign direct investors coming in, and achieve the objective of making Ghana an industrial hub for West Africa and Africa in general.
Transfer Pricing, in Taxation and Accounting, refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control.
Dr Bamfo said creating the enabling environment must include infrastructure development and government needed to accrue revenue, through taxation, to support that.
Dr Bampo was speaking in an interview with the Ghana News Agency, in Accra, on the sidelines of an Annual Tax Conference at the University of Professional Studies, Accra (UPSA).
It was hosted by the Faculty of Law on the theme: “Tax Compliance and Implications for National Development”.
Dr Bamfo said in the area of taxation, the policy had to be right and its administration had to be effective before the government could think of raising the tax rate.
“We have had the transfer pricing regulations since 2012, and it’s important we take a close look at it and ensure the existing regulations are effectively being implemented,” he said.
Ms Ayesha Bedwei, the Tax Partner at PriceWaterHouseCoopers (PWC) Ghana, told the GNA that it was quite difficult to mobilise resources in Ghana because a large part of the economy, commonly referred to as the informal sector, was not easily identifiable.
She noted the Ghana Revenue Authority had made some strides in that regard with the implementation of the Tax Identification Number (TIN) but more had to be done to ensure everyone contributed.
Professor Kwame Frimpong, the Dean of Faculty of Law, UPSA, said the conference was the Faculty’s contribution to sensitise the people on the relevance of taxation and to ensure tax compliance.
He said taxation was a form of generating income for development, but unfortunately in the developing countries there was a wrong understanding of tax.
The Faculty, therefore, saw the need to help educate the people to take their tax obligations seriously.
He said there must be collaborative efforts from all sides adding: “Within the educational institution, you must understand your core value, not only teaching students, but also share knowledge with the wider community".