Transfer Pricing in East Africa: Tanzania and Kenya in Comparative Perspective

The desire for EAC countries to attract MNCs with a view of obtaining tax has brought challenge in curbing transfer pricing manipulation arising out international transactions by associated MNCs. In the absence of aggressive tax legislation, human and financial resources, such countries are at high risk of losing substantial right share of tax due to this vice. This concern raises question as to what can be done by EAC countries to address the risk and hence prevent potential tax loss. This study addresses this concern. It focuses on the adequacy of existing international and domestic transfer pricing laws in curbing transfer pricing manipulation. The study examines interplay between transfer pricing and MNCs theories, international transfer pricing standards, aggressive tax planning and their impact to existing manipulation of transfer prices. The study brings out the failure of existing transfer pricing standards in particular arm‘s length principle to curb the vice and the need to supplement the same. In order to obtain desired results doctrinal legal research methodology is mainly employed and supplemented by empirical and comparative methods. This study has found that the existing transfer pricing law in EAC countries are not adequately curbing transfer pricing manipulation. The study recommends for amendment of existing laws by offering theoretical insight of important issues which can be taken in to account in crafting transfer pricing laws.

Name dc:type.qualificationname

phd

Level dc:type.qualificationlevel

doctoral

Grantor dc:publisher.institution

The Open University of Tanzania

Year dc:date.issued

2017

Author dc:creator

• Kiunsi, Hellen

• 340 Law

Language dc:language

en