The complexities of transfer pricing methods and the role of advance pricing agreements and tax audits in addressing disputes
- Authors: Ndou, Wavhudi
- Date: 2023-10-13
- Subjects: Transfer pricing Taxation Law and legislation South Africa , Advance pricing agreement , Double taxation , Arms-length transactions , Tax auditing , Advance tax ruling , Organisation for Economic Co-operation and Development , United Nations , World Bank
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419631 , vital:71661
- Description: Base erosion and profit shifting is defined as the use of tax planning strategies by multinational enterprises, often through exploiting gaps and mismatches between the countries in which they operate (OECD, 2021: p. 1). Multinational enterprises exploit these gaps through the use of transfer pricing. Goods and services are exchanged between connected persons or associated enterprises at prices that do not reflect their arm’s length price, in order to shift profits from high tax to low tax jurisdictions. In terms of section 31 of the Income Tax Act, transactions between connected persons or associated enterprises must be reflected at their arm’s length price. Transfer pricing has become an issue due to the difficulties in determining an appropriate arm’s length price. Disputes arise between a taxpayer and a tax administration on the methods to use to determine an appropriate transfer price. The use of Advance Pricing Agreements prevents these disputes from arising and provides tax certainty on the treatment of transactions for both the taxpayer and the tax administration. While the OECD recommends the use of Advance Pricing Agreements as a method to prevent disputes from arising, the OECD also argued that if a country has the resources to conduct an audit, an Advance Pricing Agreement will not lead to increased revenue collection. The research therefore analyses the problems faced in determining an appropriate arm's length price and compares the role that Advance Pricing Agreements and audits play in addressing transfer pricing issues. The possible role of Advance Tax Rulings is also explored, but they are found not to be suitable, except for the most simple transactions. The research applies a legal interpretative, doctrinal research methodology and a qualitative research method. The data comprised of relevant South African tax legislation, OECD Guidelines, the World Bank Handbook, and the UN Manual, together with the writings of acknowledged experts in the field. The study establishes that a proper functioning audit system is crucial to increasing revenue collection once a country implements an Advance Pricing Agreement. The research therefore recommends the adoption of Advance Pricing Agreements in South Africa as a dispute prevention measure. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2023
- Full Text:
- Date Issued: 2023-10-13
- Authors: Ndou, Wavhudi
- Date: 2023-10-13
- Subjects: Transfer pricing Taxation Law and legislation South Africa , Advance pricing agreement , Double taxation , Arms-length transactions , Tax auditing , Advance tax ruling , Organisation for Economic Co-operation and Development , United Nations , World Bank
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419631 , vital:71661
- Description: Base erosion and profit shifting is defined as the use of tax planning strategies by multinational enterprises, often through exploiting gaps and mismatches between the countries in which they operate (OECD, 2021: p. 1). Multinational enterprises exploit these gaps through the use of transfer pricing. Goods and services are exchanged between connected persons or associated enterprises at prices that do not reflect their arm’s length price, in order to shift profits from high tax to low tax jurisdictions. In terms of section 31 of the Income Tax Act, transactions between connected persons or associated enterprises must be reflected at their arm’s length price. Transfer pricing has become an issue due to the difficulties in determining an appropriate arm’s length price. Disputes arise between a taxpayer and a tax administration on the methods to use to determine an appropriate transfer price. The use of Advance Pricing Agreements prevents these disputes from arising and provides tax certainty on the treatment of transactions for both the taxpayer and the tax administration. While the OECD recommends the use of Advance Pricing Agreements as a method to prevent disputes from arising, the OECD also argued that if a country has the resources to conduct an audit, an Advance Pricing Agreement will not lead to increased revenue collection. The research therefore analyses the problems faced in determining an appropriate arm's length price and compares the role that Advance Pricing Agreements and audits play in addressing transfer pricing issues. The possible role of Advance Tax Rulings is also explored, but they are found not to be suitable, except for the most simple transactions. The research applies a legal interpretative, doctrinal research methodology and a qualitative research method. The data comprised of relevant South African tax legislation, OECD Guidelines, the World Bank Handbook, and the UN Manual, together with the writings of acknowledged experts in the field. The study establishes that a proper functioning audit system is crucial to increasing revenue collection once a country implements an Advance Pricing Agreement. The research therefore recommends the adoption of Advance Pricing Agreements in South Africa as a dispute prevention measure. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2023
- Full Text:
- Date Issued: 2023-10-13
An analysis of ethics and governance practices in the public sector: United Nations and African Union perspectives
- Authors: Shindika, Emmanuel Selemani
- Date: 2015
- Subjects: United Nations , African Union , Public administration -- Moral and ethical aspects
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/26164 , vital:64946
- Description: Recent studies highlight the importance of improving governance and ethics in public entities, especially in Africa. However, doing so requires an understanding on what forms governance and ethics in public institutions, particularly at a national level. Such considerations necessitates that some focus on continental and world institutions, such as, the African Union and the United Nations. These institutions have been in existence for a number of years with mandates of improving member states governance and ethics, as well as, service delivery to the public. As such, this research primarily focuses on understanding the roles played by the AU and the UN in shaping governance and ethics to member states, as well as, of its employees. The focus of this inquiry was to understand individual narratives about how working for public institutions on a daily to day basis influences governance and ethics understanding and application. Therefore, in order to properly analyse the narratives from respondents, the study applied an inductive and qualitative approach in order to explore how the AU and UN systems influence governance and ethics for member s states and employees. Data was collected through semi structured interviews with UN and AU officials, as well as public servants of member states for those organisations. The study made use of a thematic analyses method of interpreting data. A total of six major themes emerged, they are as follows: ethics a part in governance; effectiveness of AU and UN systems; disciplinary role; ethical guidelines and standards influence on public sector; member states adherence to the UN/AU ethical conduct; and implementation gaps in ethical guidelines within member states. Interviews were conducted in four countries namely; South Africa, Tanzania, Mauritius and Botswana. Findings from the study pointed that the AU and UN systems have loopholes in dealing with issues of governance and ethics. Moreover, member states respondents also pointed to the loopholes in those two organisations. The research suggests that member states should tighten their public entities ethical compliance assessments and follow suggestions from the UN and AU. Final recommendations and suggestions for further research are provided. , Thesis (PhD) -- Faculty of Management and Commerce, 2015
- Full Text:
- Date Issued: 2015
- Authors: Shindika, Emmanuel Selemani
- Date: 2015
- Subjects: United Nations , African Union , Public administration -- Moral and ethical aspects
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/26164 , vital:64946
- Description: Recent studies highlight the importance of improving governance and ethics in public entities, especially in Africa. However, doing so requires an understanding on what forms governance and ethics in public institutions, particularly at a national level. Such considerations necessitates that some focus on continental and world institutions, such as, the African Union and the United Nations. These institutions have been in existence for a number of years with mandates of improving member states governance and ethics, as well as, service delivery to the public. As such, this research primarily focuses on understanding the roles played by the AU and the UN in shaping governance and ethics to member states, as well as, of its employees. The focus of this inquiry was to understand individual narratives about how working for public institutions on a daily to day basis influences governance and ethics understanding and application. Therefore, in order to properly analyse the narratives from respondents, the study applied an inductive and qualitative approach in order to explore how the AU and UN systems influence governance and ethics for member s states and employees. Data was collected through semi structured interviews with UN and AU officials, as well as public servants of member states for those organisations. The study made use of a thematic analyses method of interpreting data. A total of six major themes emerged, they are as follows: ethics a part in governance; effectiveness of AU and UN systems; disciplinary role; ethical guidelines and standards influence on public sector; member states adherence to the UN/AU ethical conduct; and implementation gaps in ethical guidelines within member states. Interviews were conducted in four countries namely; South Africa, Tanzania, Mauritius and Botswana. Findings from the study pointed that the AU and UN systems have loopholes in dealing with issues of governance and ethics. Moreover, member states respondents also pointed to the loopholes in those two organisations. The research suggests that member states should tighten their public entities ethical compliance assessments and follow suggestions from the UN and AU. Final recommendations and suggestions for further research are provided. , Thesis (PhD) -- Faculty of Management and Commerce, 2015
- Full Text:
- Date Issued: 2015
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