In a bid to boost the country’s revenue generation, Federal Inland Revenue Service (FIRS), has introduced a new tax regime that will ensure appropriate taxation of multinationals and business enterprise operating in Nigeria.
The new regime would help tackle the challenge of tax evasion which is embedded in “under-pricing’’ of controlled transactions between associated enterprises, according to Kabir Mashi, acting Executive Chairman of FIRS, who was speaking at the opening of a stakeholders’ engagement on the Filing of Transfer Pricing (TP) Returns.
Transfer pricing system facilitates the process of setting appropriate prices for goods, services, asset, intellectual properties, loans, guarantees supplied or transferred by one enterprise to another members of the same group or otherwise connected.
The system will further reduce the risk of double taxation, provide taxable persons with certainty and a fair business environment for multinationals and independent enterprises doing business in Nigeria.