Gambia: GRA Boosts Transfer Pricing Audits to Protect Tax Revenue

The Gambia Revenue Authority (GRA) has initiated a technical assistance programme to enhance its capacity to detect and audit transfer pricing risks associated with multinational companies and related-party transactions. This programme, backed by the African Tax Administration Forum (ATAF) and the World Bank, aims to bridge the gap between theoretical knowledge and practical skills in conducting transfer pricing audits.

GRA Commissioner General Yankuba Darboe introduced the programme, emphasizing that while officers have received extensive training on transfer pricing principles, rules, and concepts, practical experience in conducting effective audits remains a challenge. The programme will cover essential aspects such as transfer pricing risk assessment, case identification, audit planning, transaction analysis, and the practical steps required to conduct audits.

Darboe highlighted that as tax administrations battle sophisticated tax non-compliance, particularly in cross-border transactions and multinational corporate structures, stronger transfer pricing audits have become crucial. He stressed that the Gambia cannot afford to lose significant tax revenue due to administrative weaknesses.

The programme also involves updating the country's transfer pricing legal and regulatory framework, with the GRA working alongside the Ministry of Finance and Economic Affairs to review and comment on proposed regulations.

The ultimate aim is to integrate transfer pricing audits into the GRA's compliance programme, fostering sustainable institutional capacity within the Authority. Darboe urged officers to actively engage with the experts during the training and share their newly acquired knowledge with colleagues, ensuring the long-term success of the programme.