Tax Administration Jamaica (TAJ) has partnered with the Organisation of Economic Cooperation and Development (OECD) and the World Bank to provide Technical Assistance on Transfer Pricing Training and Sensitization Sessions to TAJ staff and Stakeholders.
Diego Gonzales, Transfer Pricing Specialist of the OECD and Ana Cebreiro, Senior Economist from the World Bank were in the island January 18 – 22, 2016 to conduct technical training for staff of TAJ, as well as the Tax Policy Unit and the Revenue Appeals Division of the Ministry of Finance and Planning. During the week-long visit sensitisation sessions were held in Kingston and Montego Bay, where over seventy (70) multinational corporations were represented. TAJ and the consultants also met with the PSOJ and the Tax Committee of the Institute of Chartered Accountants of Jamaica (ICAJ).
During the stakeholder sessions, TAJ’s Commissioner General advised participants that, “The consultants were on hand to give guidance on the recent Transfer Pricing Rules”. This sentiment was endorsed by the OECD Team Lead, Diego Gonzales, who advised that, “Transfer Pricing will help Jamaica improve its tax compliance activities on non-arm’s length transactions in keeping with international best practices”.
Transfer Pricing refers to the setting of prices for transactions between connected persons, involving the transfer of property (including goods and intangibles) or services, and applies to both cross border and domestic connected party transactions. The recent legislative changes are aimed at strengthening the anti-avoidance provisions of the Income Tax Act.
TAJ will continue to sensitize its valued stakeholders on the issue of Transfer Pricing in fostering greater awareness on the subject. In addition, TAJ has created a hub of information related to Transfer Pricing on its website www.jamaicatax.gov.jm.