Cross-Border Tax Scrutiny is Rising
Multinationals in Ghana are under unprecedented scrutiny as the Ghana Revenue Authority (GRA) intensifies transfer pricing audits. With the government prioritising revenue recovery and tackling capital flight, foreign subsidiaries and investors must be prepared for detailed reviews of cross-border transactions.
What is Driving the Surge in Audits?
1. Revenue Pressures
Ghana’s fiscal space is under pressure, and the government has identified aggressive transfer pricing as a key source of lost revenue. Audits are now a tool for recouping funds.
2. IMF and International Standards
Under IMF programmes and global best practices, Ghana is aligning its tax enforcement with OECD transfer pricing principles, focusing on arm’s length pricing and related-party transactions.
3. Targeting Multinationals
Large foreign-owned companies are often singled out for scrutiny, particularly in mining, oil, telecoms, banking, and FMCG, where cross-border flows are significant.
What Multinationals Can Expect
During a transfer pricing audit, GRA examiners may demand:
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Detailed related-party transaction reports
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Documentation of intra-group service agreements and cost allocations
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Proof of arm’s length pricing
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Benchmarking studies and financial comparisons
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Local and international tax filings
Failure to provide adequate documentation may result in adjustments, back taxes, penalties, and reputational damage.
How Companies Should Prepare
1. Robust Documentation
Ensure that all inter-company transactions are supported with contracts, benchmarking reports, and proper transfer pricing policies.
2. Internal Reviews
Conduct pre-audit assessments to identify gaps before regulators do.
3. Legal Opinions
Commission independent legal opinions on compliance with Ghana’s Transfer Pricing Regulations. These can be decisive in negotiations or disputes.
4. Executive Training
Prepare management for interviews and hearings with GRA officials.
Why Legal Representation is Critical
Transfer pricing disputes can escalate into high-value litigation or arbitration. Without expert legal counsel, multinationals risk adverse assessments and public exposure. Clinton Consultancy acts as a bridge between Ghanaian law and international corporate practice, ensuring that multinationals are protected at every stage.
Clinton Consultancy’s Role
We assist foreign companies in:
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Preparing compliant transfer pricing documentation
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Responding to GRA audit queries
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Issuing formal legal opinions for boards and investors
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Representing clients in court, arbitration, or tax tribunals
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Negotiating settlements and resolutions discreetly
Contact
For confidential advice on transfer pricing audits in Ghana:
amanda@clintonconsultancy.com
