transfer pricing fraud in the ghanas mining sector

  • The Causes and Effects of Transfer Mispricing in Mining ...

    The transfer pricing manipulation problem is characterised by Multinational Enterprises (MNEs) who are centred to operate as strategic business entities. This problem has become even more serious as many companies have subsidiaries extended all over

  • Mining executives targeted in major tax evasion crackdown

    Mining executives targeted in major tax evasion crackdown. PROSECUTORS filed economic sabotage, fraud and money laundering charges yesterday against the Managing Director of Acacia Mining Plc, Asa Mwaipopo, as part of a widening investigation into allegations of tax evasion against the country''s biggest mining company.

  • Mining Tax and Transfer Mispricing Concerns | Deloitte ...

     · The mining industry breathed a sigh of relief when the OECD Secretariat Proposal document released in October 2019 ("OECD Secretariat Proposal") assumed that extractive industries and commodities would not be subject to the new tax approach being proposed under Pillar One. 1 As eluded to, Pillar One seeks to reset the nexus rules that have been the basis of the international tax …

  • Transfer Pricing in the Mining Industry | TPcases

     · Transfer pricing occurs when one company sells a good or service to another related company. Because these transactions are internal, they are not subject to market pricing and can be used by multinationals to shift profits to low-tax jurisdictions. Related-party transactions in mining can be broadly grouped into two categories: (1) the sale of ...

  • (PDF) Political Economy of the Mining Sector in Ghana ...

    The net impact of Ghana''s mining sector on its development has been modest. ... including contractual arrangements that give the government a limited share of revenues and the problem of transfer pricing. ... can evade Parliamentary scrutiny of their favored appointees and undermine the tenure of the staff of the Serious Fraud Office, CHRAJ ...

  • Report Proposes African Transfer Pricing Improvements

    The study assesses the development and implementation of rules to monitor transfer pricing in the mining sector in countries with varied experiences, looking more in-depth at Ghana, Guinea, Sierra Leone, Tanzania, and Zambia. The paper says that introducing the concept of the arm''s length principle in an income tax law is only a first step.

  • Zambia strengthens its transfer pricing rules

     · Abusive transfer pricing practices is one of the primary sources of these losses. Having effective transfer pricing legislation is a key element in African countries'' fight to combat abusive transfer pricing practices and is also important in providing taxpayers with greater tax certainty and encouraging voluntary compliance.

  • Ghana׳s extractive industries and community benefit ...

     · The system devised to distribute mining wealth to local level works as follows. In Ghana''s mining sector, it is a royalty, provided directly to the government quarterly, which is the main source of revenue derived by gold mining. This royalty was previously set by the government at a flexible rate of between 3 and 6% tax of profits.

  • Political Economy of the Mining Sector in Ghana

     · government a limited share of revenues and the problem of transfer pricing. 2. Institutions and the political environment are central to understanding and rectifying the poor impact of mining on Ghana''s economic development. This section highlights the vulnerabilities in mining sector governance along the natural resource management value

  • AFRICAN MINING LEGISLATION ATLAS

    AFRICAN MINING LEGISLATION ATLAS - Part Guidingtemplate. Transfer pricing is a business practice that consists of setting a price for the purchase of a good or service between two "related parties" (e.g., subsidiary companies that are owned or controlled by the same parent company). There are various kinds of transactions that may take ...

  • Preventing tax revenue loss from extractive sector in Tanzania

    Develop a transfer pricing risk matrix specific to the extractive sector. International Tax Unit and extractive industry audit team. Ensure that the Tanzania Mineral Audit Agency and PURA receive training on transfer pricing so that they are able to identify and evaluate transfer pricing risks regarding non-tax revenue, and deductible expenditure.

  • Ghana: Mining Comparative Guide

     · However, between 1986 and 2006, the Minerals and Mining Law (153/1986, PNDCL) was the basic law regulating the mining industry in Ghana. Although this law was regarded as ground-breaking in comparison to many regimes in sub-Saharan Africa, changes on the international mining scene necessitated its revision.

  • Transfer Pricing News Stories | TPcases

     · Studies highlights a strong need for capacity strengthening in the area of transfer pricing throughout the African continent and for enhancing the knowledge of mining industry within tax authorities. South Africa has, for many years, been the leader in transfer pricing audits among the African countries.

  • Africa Legal | Mining in Zim

     · Both mining sector players and regulators must be able to come to terms with the intricate relationship between mining processes – mine development, mining and mineral processing, marketing, mining taxation, mining cost structures, value chains, profit-shifting mechanisms (transfer pricing, re-invoicing and thin capitalisation), governance ...

  • Tax Solutions for Mining | Taxation Services | Deloitte ...

    Transfer Pricing Challenges mining companies face. The mining industry poses some very specific challenges from a transfer pricing point of view. South African mining groups are often involved at more than one level in the supply chain. For example, the group may both mine and beneficiate the …

  • Buried Treasure

    Australia is a global mining giant: Australian mining companies10 have one of the largest global mining footprints, with 88 mining projects currently operating across Africa, Asia, Latin America and the Caribbean involved in gold, oil and gas, Ayanfuri, Ghana: Job is the head teacher at St John''s Catholic Basic School in Ayanfuri, Ghana.

  • Guyana''s Extractive Industry Sector (EIS)

    Transfer Pricing in the Extractive Sector in Ghana - Natural Resource ... Ensure the Mining and Petroleum Desks, and the Transfer Pricing Unit receive specialized audit ... fraud. The finance ministry is considering reviewing the penalties, which may include a specific penalty to discourage transfer pricing.

  • Current issues in extractive industries taxation

    Transfer Pricing: Based on the discussions held to date at the Policy Dialogue, countries have noted ongoing difficulties in applying transfer pricing approaches to EI product transactions. In addition, as noted in a report to the G20 Development Working Group: " … countries often find it difficult to apply

  • Transfer Pricing in the Extractive Sector in Ghana ...

     · Like many countries in West Africa, Ghana has abundant mineral and petroleum resources, making the extractive industry a vital source of government revenue. According to the Ghana Extractive Industries Transparency Initiative (GHEITI), the mining sector alone contributed 10 percent to gross domestic product (GDP) in 2013, and oil and mining ...

  • Ministry of Trade and Industry

    Key Investment related legislation in Ghana includes the following: Ghana Investment Promotion Centre Act 2013, (Act 865) Technology Transfer Regulations, 1992, (LI 1547) Transfer Pricing Regulations, 2012 (L.I. 2188) Petroleum (Exploration And Production) Law …

  • Financial reporting in the mining industry International ...

    mining Financial reporting in the mining industry International Financial Reporting Standards 6th edition

  • GRA grabs gas plant contractor |Business Day Ghana

     · But concerns over potential transfer pricing manipulation were further heightened by the fact that Ghana was losing an estimated $36 million annually in tax revenue from transfer pricing irregularities in the mining sector alone.

  • Transfer pricing in mining with a focus on Africa : a ...

    With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.

  • The TUC calls for study of costs and benefits of Export ...

     · Recent studies in the mining sector showed that Ghana loses about US$36 million a year through transfer pricing. Together with the Ghana Revenue Authority we have drafted regulations to strengthen existing tax legislation to deal with taxation of multinational companies and minimize the incidence of abuse of transfer pricing.

  • Transfer Pricing in Ghana

    Transfer Pricing in The application and practice Overview Ghana''s quest to put in place Transfer Pricing Regulations before the end of year 2012 has almost become a reality. On 31 July Transfer Pricin 2012(L.I.2188) the Parliament now awaiting the customary twenty one Parliamentary sitting become law. L.I. 2188 deals with the application of ...

  • Transfer Pricing in the Extractive Sector in Ghana

    Transfer Pricing in the Extractive Sector in Ghana There is no specific transfer pricing penalty. Any additional tax raised following a transfer pricing adjustment will be deemed underpaid and therefore subject to normal penalties under the Income Tax Law. It is important to note that there is no penalty where the taxpayer makes the transfer ...

  • Ghana loses US$6 billion yearly in mining sector

     · Ghana loses US$6 billion yearly in mining sector - Dr. Ali-Nakyea. Curbing illicit financial flows will be one of the surest ways for the government to raise money to fund the budget and other ...

  • Zambia''s transfer pricing advances and the Mopani copper ...

     · Dr. McClure has written several articles on various aspects of transfer pricing including the determination of arm''s length interest rates, arm''s length royalty rate, and the transfer pricing economics for mining. Dr. McClure taught economics at the graduate and undergraduate level before his transfer pricing and valuation career.

  • transfer pricing fraud in the ghana

    transfer pricing fraud in the ghana s mining sector. Transfer Pricing in the Extractive Sector in Ghana the significant contribution of the extractive sector to Ghana''''s economic growth, steps to strengthen enforcement of transfer pricing rules in the mining sector. The recommendations can be broadly grouped into

  • Transfer Pricing at Deloitte

     · Conduct functional, risk, business, industry, intercompany transactions and economic analysis. Prepare and review Transfer Pricing (TP) reports and TP returns. Represent clients on TP audits and reviews conducted by the tax authority. Research and develop recommendations suitable to client business scenarios.

  • How Businesses Are Evading Taxes Through Transfer Pricing ...

     · Transfer pricing refers to the allocation of profits for tax and other purposes between parts of a multinational corporate group. By: Joshua

  • Mining Companies In Eestern Region Ghana

    Transfer Pricing Fraud In The Ghana S Mining Sector . Ghana now a lower middle income country Modern On transfer pricing, Dr Duffour said, it is estimated that developing countries lost about US0 billion every year through transfer pricing fraud adding that recent studies in the mining sector also showed that Ghana lost about US.

  • How To Improve Mining Tax Administration And Collection ...

    he surge in private investment in mining after the collapse of the Soviet Union has now lasted, more or less uninterruptedly, for over two decades and still remains a prominent feature of the mining industry. The nineties and early 2000s were marked by a strong drive by countries to attract mineral exploration and mining development invest - ment.

  • Global commodity price slump bites Ghana''s economy ...

     · The government will, for that matter, adopt measures to ensure prudent management of the revenue so they are utilized in a way to benefit Ghanaians.

  • Ghana now a lower middle income country

     · On transfer pricing, Dr Duffour said, ''it is estimated that developing countries lost about US0 billion every year through transfer pricing fraud adding that recent studies in the mining sector also showed that Ghana lost about US million a year through transfer pricing''. He said the Ghana Revenue Authority had drafted regulations to strengthen ...