ISLAMABAD: A two-member delegation of Federal Board of Revenue (FBR) will represent Pakistan at Economic Cooperation Organization (ECO) intra-joint training seminar titled “Transfer Pricing, Fundamental principles and International Developments” in Tehran from October 6-8.
Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan are member states of the ECO while Northern Cyprus enjoys observer status. A well-placed source at the FBR Wednesday told this scribe that two-member delegation comprising Chief Income and Tax Policy Malik Amjad Zubair Tiwana and Member Inland Revenue-Policy and Official Spokesperson FBR Shahid Hussain Assad.
The source said that Shahid Hussain Assad is likely not to attend the seminar due to inevitable reasons. However, his name existed in the list of two-member delegation. The source said that in pursuant to the decision made in the first meeting of ECO Heads of Tax Administration (Tehran, January 2013), the Iranian National Tax Administration (INTA) and the ECO were co-organising the joint training seminar. “The seminar will be held on October 6-8, 2014 at the Headquarters Building of the Iranian National Tax Administration at Davar St., Imam Khomeini Square, Tehran,” the source revealed.
It is pertinent to mention here that transfer pricing is the setting of the price for goods and services sold between controlled (or related) legal entities within an enterprise. For example, if a subsidiary company sells goods to a parent company, the cost of those goods is the transfer price. Legal entities considered under the control of a single corporation include branches and companies that are wholly or majority owned ultimately by the parent corporation.
Certain jurisdictions consider entities to be under common control if they share family members on their boards of directors. It can be used as a profit allocation method to attribute a multinational corporation’s net profit (or loss) before tax to countries where it does business. Transfer pricing results in the setting of prices among divisions within an enterprise.
