One such regulation is transfer pricing (TP), which aims to reduce tax avoidance through cross-border transactions. Transfer pricing refers to the pricing of cross-border transactions between two related entities. A key incentive for challenging tax-payers on their transfer prices is that the authorities see transfer pricing as a soft target, with the potential to collect significant tax revenue. Given that transfer pricing is a new subject for the Bangladesh tax authorities, our tax department may consider investing time in the skills development of the officersThe dispute of transfer pricing has been so enormous over the years, that OECD, with the help of G20 countries, have developed the principle of Base Erosion and Profit Shifting (BEPS) with specific action points on transfer pricing issues. Given that transfer pricing is a new subject for the Bangladesh tax authorities, our tax department may consider investing time and energy in the skills development/competency building of the tax officers.

Source: Dhaka Tribune March 28, 2017 18:22 UTC