Developing nations need to instate modern transfer pricing legislation to increase tax revenues, and assistance offered to these countries must be targeted, in order to maximize effectiveness, based on their current state of legislation and tax infrastructure. A new study was prepared earlier this month by PricewaterhouseCoopers for the European Commission, outlining the potential steps needed to address the inadequate transfer pricing rules in developing nations. According to findings contained in the report, the economic advantages and tax revenue benefits of instating ... Read More

A ban on the government financing of mining activities has been called for in Europe, following allegations of gross tax evasion by resource sector operators in Africa. Fifty members of the European Parliament have signed an open letter to the EU president and the European Commission, calling for a temporary suspension on all government financing of international mining projects. The moratorium is to be upheld until adequate standards can be put in place to protect the tax revenues and development opportunities ... Read More

The fight against global poverty could be better supported if financial reporting requirements for multinational corporations were to be greatly expanded, allowing governments to fight tax evasion and collect appropriate amounts of taxes to fund services in developing nations. On November 10th a new report was released by the international development charity Christian Aid, proposing extensive new reporting standards for any company operating on a multinational level. The report, Shifting Sands: Tax Transparency and Multinational Companies, claims that developing nations need to increase ... Read More

Vietnam will soon boost its investigations into transfer pricing practices of local businesses, in order to decrease the occurrence of tax evasion and spurn national tax revenues. The tax authorities of two of Vietnam’s primary business centers are launching pilot programs of increased investigations into the transfer pricing behavior of local units of international businesses. According to Nguyen Van Mo, deputy head of the tax department in Hanoi, and Le Thi Thu Huong, deputy head of the Ho Chi Minh City tax authority, ... Read More

Indian units of foreign companies could soon benefit from eased regulations surrounding the scrutiny and compliance issues of transfer pricing in their annual tax returns. New “safe harbor rules” could soon be instated in India, allowing tax authorities to accept the transfer pricing returns of local units of foreign companies without scrutiny. The announcement was made on September 13th by S S N Moorthy, Chairman of the Indian Central Board of Direct Taxes (CBDT). Currently local subsidiaries of foreign firms are required to clear ... Read More