Avocado Weekly: Cote D’Ivoire Tries to Ease Transfer Pricing Tensions With Cafe-Cacao Sector

Bermuda announces new global minimum tax proposal

Cacao beans, photo by Etty Fidele on Unsplash

• Cote d’Ivoire’s tax authority Thursday held a workshop aimed at explaining its OECD-rule based audit methods to companies in the country’s coffee and cacao sector, which is one of the world’s biggest and has been the source of several transfer pricing disputes, according to local reports. Minister of Budget Moussa Sanogo said some companies dispute the amount of tax they’re assessed on their sales of primary materials, while others think they haven’t been credited enough for expenses. “This situation creates some misunderstandings and tension,” he said.

• The workshop sought in particular to explain how the authority finds comparables to determine the arm’s length price for primary materials sold by companies. Sanogo said it’s crucial for the two sides to reach an understanding on transfer pricing rules. “The most important thing is for the government to have resources to develop the country,” Sanogo said. (Abidjan.net) (Koachi)