Are you doing business in Tanzania? Then a “TRA audit” must be common terminology with you – if not, then either you have a charmed life, or it is just a matter of time before you acknowledge receipt of an audit notification. A wise person once said, “if you fail to plan, then you are planning to fail” and it can never be overemphasized how crucial planning ahead is, for a successful transfer pricing audit.
Subjectivity in determining whether related party transactions conform to the arm’s length principle makes transfer pricing audits with the Tanzania Revenue Authority (“TRA”) very challenging to taxpayers. However, with the guidance provided in the Transfer Pricing Guidelines, 2020 (“the TP Guidelines”), conducting a successful transfer pricing audit is trickled down to rely on proactive planning (thinking ahead) by the taxpayers.
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