Africa Tax Desk

As Africa has become an attractive continent for large American corporations to invest in (mining sector, oil and gas, and support industries), so have African Tax Authorities become aware of the loss of revenues to OECD countries through clever transfer pricing techniques. As a result 35 African countries are now members of ATAF - the African Tax Administration Forum - formed to educate and ultimately assist African Tax Authorities to embark upon Transfer Pricing audits without borders.

Our panel of African and American based specialists, who have successfully trained members of the Tax Authorities, are well connected with their leaders, act for major MNE's in Africa and have successfully concluded a number of major Transfer Pricing disputes for clients in Malawi, Uganda and South Africa.

As an association of multi-disciplinary specialists, with direct African experience, we are well positioned to assist American corporations overcome some of the practical difficulties they will face on Transfer Pricing issues with African Tax Authorities - many of whom lack training and experience comparable to what Americans will be used to in dealings with first world Tax Authorities. This leads to much frustration, and often a misunderstanding between the parties who, due to simple miscommunication, start to distrust each other. This in turn leads to complications that can easily be avoided.

Working with a practical hands on team in Africa, with representatives in America as well, gives these American corporations an edge over those that simply continue to use the usual large accounting and legal firms, thinking they have the hands on experience in Africa. Often they do not. Many offer their expertise out of offices based in Europe, also removed from the African continent, and without the appropriate connectivity to Tax Authority leaders.

As a result of a focus on education around Transfer Pricing in Africa, our association specialists are well respected by their Tax Authority counterparts, and will oftentimes listen carefully to representations made by them, when acting for clients. It must be remembered that Africa is going through a fast learning curve. This must be respected from an African perspective, and approached with sensitivity to the various African cultures in the throughout Africa. An overhanded, first world approach will not necessarily result in success.

An educated, practical approach, with a clear understanding of the domestic laws, and an audience with the appropriate leaders in the Tax Authorities, will ultimately achieve greater success.