Maya Forstater (Center for Global Development) examines the accuracy of the studies claiming that addressing transfer price manipulation could generate huge sums of revenue for developing countries.
Government budgets in low income countries are tiny compared to the need for public services. Low income countries such as Malawi and Vietnam have only around $400 to spend on each person compared with an OECD average of $13 000. The question of how governments in developing countries can raise enough public revenue to pay for needed education healthcare and infrastructure has concentrated the minds of everyone from the World Bank to Oxfam and of governments and revenue authorities around the world.
Transfer pricing itself is often equated with tax avoidance. For example South Africa’s President Jacob Zuma addressing the UN Global Assembly recently said:
Maya Forstater (Center for Global Development) examines the accuracy of the studies claiming that addressing transfer price manipulation could generate huge sums of revenue for developing countries.
Government budgets in low income countries are tiny compared to the need for public services. Low income countries such as Malawi and Vietnam have only around $400 to spend on each person compared with an OECD average of $13 000. The question of how governments in developing countries can raise enough public revenue to pay for needed education healthcare and infrastructure has concentrated the minds of everyone from the World Bank to Oxfam and of governments and revenue authorities around the world.
Transfer pricing itself is often equated with tax avoidance. For example South Africa’s President Jacob Zuma addressing the UN Global Assembly recently said:
