20/11/2024 – Experts from the Global Forum Secretariat, the Asian Development Bank (ADB), the Pacific Islands Tax Administrations Association (PITAA) and the OECD, under the framework of the Global Forum’s Pacific Initiative, delivered a comprehensive workshop on ensuring effective compliance with transfer pricing legislation and applying effective exchange of information (EOI) mechanisms to resolve transfer pricing cases on 12-15 November 2024.
Hosted by the Samoan Ministry of Revenue and Customs in Apia, Samoa, the workshop gathered 23 representatives from nine Pacific Islands States including Cook Islands, Fiji, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor Leste, Tonga and Vanuatu to share experiences on handling transfer pricing cases and the role of exchange of information in transfer pricing audits.
The workshop introduced the participants to the fundamentals of the arm’s length principle, transfer pricing concepts, risk assessment techniques and the conduct of transfer pricing audits. The participants also discussed the role of exchange of information in accessing information relevant to transfer pricing audits and the need for appropriate legal gateways, such as the Convention on Mutual Administrative Assistance in Tax Matters, and the processes for joining the Convention. Participants shared country experiences on transfer pricing and the use of EOI.
The Pacific Initiative was launched in October 2020, based on a phased approach for the gradual implementation of the international standards, to advance tax transparency and strengthen domestic resource mobilisation in the region. Development partners, including the ADB, the OECD, the Global Forum, the World Bank, PITAA, the Australian Taxation Office and the New Zealand Inland Revenue, agreed to organise a series of capacity-building and technical assistance activities for the benefit of 16 Pacific jurisdictions (Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tokelau, Tonga, Tuvalu and Vanuatu), half of which are Global Forum members. Along with tailored country assistance, these regional workshops support a gradual and consistent implementation of the international tax standards in the Pacific.
The Global Forum is the leading multilateral body mandated to ensure that jurisdictions around the world adhere to and effectively implement both the exchange of information on request standard and the standard of automatic exchange of information. These objectives are achieved through a robust monitoring and peer review process. The Global Forum also runs an extensive capacity-building programme to support its members in implementing the standards and help tax authorities make the best use of cross-border information sharing channels.
The Global Forum capacity-building programme is supported by the following development partners:
