South African companies accused of shirking payments
September 30, 2008
Taxpayers in South Africa have been pushing the boundaries of tax compliance by taking contentious positions on transfer pricing, the annual report of the South African Revenue Service (SARS) says.
SARS is concerned by the quality of transfer-pricing compliance, particularly in manufacturing and structured-finance transactions that were more attractive with high interest rates.
Companies are also accused of underestimating their provisional tax, by a total of R15bn ($1.82 billion). The top 10 taxpayers were responsible for 55% of that.
Last year, SARS obtained 514 convictions for and completed 2098 investigations of tax offences.
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