TNCs, transfer pricing and tax avoidance
- Kenya: Pambazuka news, 2011.
- 4p
Charles Abugre in Part 3 of a four-part series on the flow of ‘dirty money’ explains how individuals/companies inflate financial obligations between subsidiaries of companies as a means of stripping off the capital of a subsidiary located in a high tax jurisdiction and transferring the capital through inflated interest payment to a low tax jurisdiction. He also looks at how it was calculated that US$1.8 trillion dollars illicitly left Africa between 2000 and 2008.
Transnational companies Transfer Pricing, Taxes, Mispricing,
