Sunday, September 16, 2012

Govt to frame regulation for transfer pricing

KATHMANDU, SEP 16, 2012

Finance minister Barshaman Pun has said that the Finance Ministry will formulate a separate regulation to tackle the complexity of the issue of transfer pricing.

Inaugurating the South Asian Federation of Accountants’ international seminar on ‘International Taxation and Transfer Pricing’ organised by the Institute of Chartered Accountants of Nepal (ICAN), in the capital today, the minister also stressed on regional cooperation and coordination to cope with revenue fraud issues. “A collective effort of South Asian countries will help combat revenue fraud,” said Pun.

Transfer pricing, simply put, refers to pricing of transactions between group companies in different countries, said president of ICAN Madhu Bir Pande, adding that transfer pricing is one of the most important tax challenges being faced by different countries due to globalisation of trade.

The seminar focused on contemporary and emerging issues on international taxation and transfer pricing, he informed. Due to cross-border trade and increasing globalisation, international taxation has become an important issue, said Pande, adding that the growing presence of group transactions has necessitated the adoption of transfer pricing policies for determining taxes.

Participants from Nepal, Bangladesh, Pakistan, Sri Lanka and India highlighted the various aspects of international taxation and discussed on a common agenda of international taxation, legislation and recent development, and Double Tax Avoidance Agreement in SAARC, along with other issues.

Source: THT

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