KPMG in Nigeria recently conducted a survey to gauge taxpayers’ TP awareness and preparedness for TP audits. We are pleased to present the findings from the maiden edition of our TP Awareness Survey. For this maiden edition of the Survey, we had over 50 respondents across the major industry sectors.
The Federal Inland Revenue Service (FIRS), in August 2012, published the Income Tax (Transfer Pricing) Regulations (the Nigeria TP Regulations) with the first year of compliance being the accounting year commencing after the date of publication of the Regulations.
The Nigeria Transfer Pricing (TP) Regulations require taxpayers to carry out all transactions with related parties at arm’s length. With the introduction of TP rules to the Nigerian tax system, it has become imperative for taxpayers to appropriately plan and manage their related party transactions in order to avoid material additional tax liabilities in the event of a TP audit.
KPMG in Nigeria recently conducted a survey to gauge taxpayers’ TP awareness and preparedness for TP audits. We are pleased to present the
findings from the maiden edition of our TP Awareness Survey. For this maiden edition of the Survey, we had over 50 respondents across the major industry sectors.
This survey report provides valuable insights into various aspects of TP such as compliance awareness, audit processes & outcomes and dispute resolution options. Based on the feedback provided by the respondents, there appears to be an appreciable level of awareness of TP compliance requirements.
A number of respondents have received Information and Document Requests (IDRs) from the FIRS, indicating potential commencement of TP audits. With the increased scrutiny by the tax authorities, taxpayers may need to focus more attention and resources on TP going forward. We would like to thank all respondents for taking out time to be a part of the maiden edition of this Survey. We look forward to your participation in subsequent editions.
To the readers of this report, we sincerely hope that you find the feedback and insights useful as you seek to continue to improve on your organization’s TP compliance and audit preparedness.
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