Control of transfer prices

Six Latin American countries took part in a visit to exchange information about controlling the abusive manipulation of transfer prices (the prices set in international transactions between fiscally-related persons or entities*). This initiative was made possible thanks to the collaboration of the Argentinean Federal Public Revenue Administration (AFIP), which offered its experience and central headquarters facilities.

This activity is financially and logistically supported provided by the IEF, the FIIAPP and the CIAT, as part of EUROsociAL II.

This activity is an initial effort in “Voluntary Compliance with Tax Obligations” for the area of “Public Finances,” which will lead to the creation of new activities.

All the participating countries (Colombia, Costa Rica, Ecuador, El Salvador, Guatemala and Paraguay) maintain the position that the issue of transfer prices is strategic. Consequently, they made corresponding requests at the start of the Programme.

As a result of this recent activity, additional requests have been made. These priorities regard both regulatory and operational aspects.

In the future, the CIAT, together with its Programme partners, will evaluate additional activities in order to further study the exchanges made in this first meeting and to implement the good practices learnt.

*Transfer Prices, by Olga Hernández and Ángela Justo. http://www.ief.es/documentos/recursos/publicaciones/revistas/cuadernos_formacion/2012_15_8.pdf