Transfer pricing (TP) is one of the many vehicles multinational companies (MNC) use to manage the tax impact on incomes derived from different tax jurisdictions. Technological preferences, local market conditions and tax competition offer sustainable justification for transfer pricing.
Ghana introduced transfer pricing legislations into its tax regime in 2001 but the legislation faces many practical challenges. Local expertise for determining instances of transfer pricing, obtaining relevant transfer pricing information and the permitted use of stability agreements signed between Government of Ghana and foreign investors have rather exacerbated the problem.
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