Gambia Revenue Authority: Strengthening Transfer Pricing Audits to Protect Tax Revenue

• The Gambia Revenue Authority (GRA) has launched a technical assistance programme to strengthen its transfer pricing audit capabilities.
• The programme aims to move tax officers from theoretical knowledge to practical experience in conducting effective audits.
• Partnerships with international organisations, including the African Tax Administration Forum (ATAF) and the World Bank, are crucial for the success of the programme.
• The programme covers the country's transfer pricing legal and regulatory framework, which will be reviewed and commented on by the GRA.

Conventional academic and professional training are not enough to equip tax officers with the skills needed to conduct effective transfer pricing audits.

The Gambia's economy heavily relies on domestic revenue mobilisation, which is threatened by tax non-compliance in cross-border transactions. To address this issue, the Gambia Revenue Authority (GRA) has launched a technical assistance programme to enhance its transfer pricing audit capabilities. The programme aims to move tax officers from theoretical knowledge to practical experience in conducting effective audits. This initiative is crucial for the country's development, as it will enable the GRA to mobilise revenue more efficiently and effectively. The programme also aligns with the GRA's Corporate Strategic Plan for 2025-2029, which prioritises investing in university programmes, professional qualifications, and specialised training for its officers.

The success of the programme relies heavily on partnerships with international organisations. The African Tax Administration Forum (ATAF) and the World Bank are providing technical assistance to support the GRA's efforts. ATAF experts Betty Ahwera and Robert Luvuuma, both Transfer Pricing Specialists, will work closely with GRA officers to provide practical experience in conducting transfer pricing audits. This collaboration is essential for addressing illicit financial flows, base erosion, and profit shifting, which are becoming increasingly sophisticated forms of tax non-compliance. The programme also covers the country's transfer pricing legal and regulatory framework, which will be reviewed and commented on by the GRA in collaboration with the Ministry of Finance and Economic Affairs.

Conventional academic and professional training are not enough to equip tax officers with the skills needed to conduct effective transfer pricing audits. The programme recognises this gap and aims to provide direct practical support to tax officers through hands-on experience. GRA Commissioner General Yankuba Darboe stressed that understanding transfer pricing principles is different from conducting an effective audit, and that the programme will bridge this gap by providing officers with the necessary skills and expertise. This approach will enable the GRA to identify and address transfer pricing risks more effectively, ultimately protecting tax revenue and promoting domestic revenue mobilisation.

Lawyers and compliance officers should watch for the implementation of new Transfer Pricing Regulations in Gambia, which may impact multinational companies operating in the country.

Source: Original reporting via GRA Boosts Transfer Pricing Audits to Protect Tax Revenue