Gambia GRA: Boosts Transfer Pricing Audits to Protect Tax Revenue

The Gambia Revenue Authority (GRA) has launched a technical assistance programme to strengthen its ability to identify and audit transfer pricing risks involving multinational companies and related-party transactions. The Transfer Pricing Technical Assistance Mission and Practical Audit Support Programme receives support from the African Tax Administration Forum (ATAF) and the World Bank.

This development is significant for practitioners as it highlights the GRA's efforts to protect tax revenue in The Gambia. With the increasing presence of multinational companies in the country, transfer pricing has become a critical issue that requires careful monitoring and auditing. The programme aims to equip the GRA with the necessary skills and expertise to identify and address potential transfer pricing risks, ensuring that taxpayers comply with the relevant laws and regulations.

The legal context for this development is rooted in the Income Tax Act of 2005, which governs taxation in The Gambia. The act requires taxpayers to declare their income accurately and pay taxes accordingly. Transfer pricing refers to the prices charged by related parties for goods or services traded between them. If these prices are not arm's length, it can lead to tax evasion or avoidance. The GRA's programme is designed to address this issue and ensure that multinational companies operating in The Gambia comply with the relevant laws.

The key parties involved in this development include the Gambia Revenue Authority (GRA), the African Tax Administration Forum (ATAF), and the World Bank. The GRA is responsible for implementing the programme, while ATAF and the World Bank provide technical assistance and support. Practitioners should monitor this development closely as it may impact their clients' tax obligations in The Gambia.