Increased controversy in Africa after BEPS – An analysis of recent TP disputes
Channel: MyTPAGlobal
Date: 2017-12-01

A presentation on increased controversy expected after BEPS and the MLI in Africa, and an update on current TP disputes going to court in Africa.

9 African jurisdictions have signed the MLI: South Africa, Nigeria, Seychelles, Mauritius, Cameroon, Egypt, Gabon, Burkina Faso and Senegal. Although many more African countries attended the discussions leading up to the MLI, apparently only 2 countries’ representatives made any meaningful contributions to the discussions: South Africa and Mauritius. What does this indicate?

The increased controversies expected can be illustrated by the effect of the 2017 “draft” OECD Commentaries and the MLI on potential Permanent Establishments (“PEs”) in Africa. What risks emerge here?

For instance, an enterprise head office supplies goods world-wide. Its subsidiary company in Mauritius assists facilitating marketing, sales and conclusion of sales. Potential PEs may now exist. In another case, a supply subsidiary in Mauritius arranges sales of products to the Group subsidiaries in Africa. Some African countries and Mauritius have signed the MLI. Potential PEs may also arise.

TPA Global has initiated a series of webinars covering the global impact of emerging BEPS developments on various international structures. In the 2nd webinar of this series, we will analyze the impact of BEPS Action points on PEs in Africa, and present some live TP cases going to court in Africa.

Key Highlights of the webinar:

- Presentation of the following elements of BEPS dealing with PEs in Africa:
- Action 7 – Permanent Establishments;
- “draft” 2017 OECD Commentaries & MLI;
   -  Actions 13 – MLI.
   -  Presentation of various current TP disputes going to court in Africa:
   - Zimbabwe and reliance on its general anti-avoidance provision to make a TP adjustment;
   - Malawi and reliance on Article 9 of the Double Tax Treaty to make a TP adjustment;
   - South Africa and application of a hybrid application of the - Profit Split Method and para 6.38 of the OECD TPG.

Speaker

Prof. Dr Daniel N. Erasmus
- Independent tax Advisor for TRM Daniel Erasmus Tax Court Practitioners
- Adjunct Professor of International Tax & Transfer Pricing, Thomas Jefferson School of Law, United States of America
Thursday, November 30, 2017