Paper launch - Preventing Tax Base Erosion In Africa

Alexandra Readhead, Professor Sir Paul Collier
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Blavatnik School of Government
Radcliffe Observatory Quarter
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Seminar Room 4

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Lectures and seminars
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Join us for the launch of “Preventing Tax Base Erosion in Africa: a Regional Study of Transfer Pricing Challenges in the Mining Sector”, with Alexandra Readhead, MPP Class of 2013 alumna. There will be an introduction by Professor Sir Paul Collier, followed by a Q&A.

This talk is free and open to all. Guests are welcome to bring their lunch with them to eat during the talk.

The report is the result of a collaborative project between Alexandra and the Natural Resource Governance Institute, a non-governmental organisation that helps people to realize the benefits of their countries’ endowments of oil, gas and minerals.

The Africa Progress Panel has identified cross-border transactions between related parties as a major threat to the tax base of African countries. One of the principal vectors of losses in these transactions is transfer pricing, which occurs when one company sells a good or service to another related company. Because these transactions are internal, they are not subject to ordinary market pricing and can be used by multinational corporations to shift profits to low-tax jurisdictions.

This collection of work, consisting of a report and five country case studies, assesses the development and implementation of rules to monitor transfer pricing in the mining sector, in Guinea, Ghana, Sierra Leone, Tanzania, and Zambia.

This report sets out a number of recommendations that would help the five case study countries, as well as other countries in similar contexts, to better address transfer pricing risks in the mining sector through the application of the arm’s length principle, and alternative tax policy rules.