Newly-appointed Barbados Revenue Authority (BRA) Revenue Commissioner Jason King is urging corporations to prepare their operations for the introduction of explicit transfer pricing tax legislation.
King was speaking on the final day of the recent Global Business Conference, staged by BIBA, the Association for Global Business, at Wyndham Grand Barbados Sam Lord’s Castle.
Providing a Global Business Tax Update, the BRA head noted that while the transfer pricing legislation is not yet finalised, stakeholder comments and assessments of affected entities have already been received and are being incorporated into the legislation.
Transfer pricing is an accounting practice that allows businesses owned by the same parent company to buy and sell goods and services to one another.
“We may not currently have formal transfer pricing legislation, but those technical persons here are aware of Section 29 of the Income Tax Act in terms of transactions.
“And in transactions that may not then appear to be at arm’s length, an assessment can be made.
So, my humble advice is those of you who know that transfer pricing legislation will affect you, please organise your businesses so that when the legislation comes, there is no shock effect,” King advised.
He acknowledged that while the transfer pricing legislation has been in draft for some time, it is expected to be implemented shortly.
For companies concerned about the Global Minimum Tax and compliance requirements, King assured that the BRA is “actively in the development stages to ensure that we can receive your information” and to facilitate pre-payments through the Global Relations Portal until TAMIS is reconfigured to accommodate it.
(PR/SC)
