SRC raises awareness on transfer pricing |27 July 2023

Mr Meaker addressing the gathering (Photos: Joena Meme)

The Seychelles Revenue Commission (SRC) held an awareness session on transfer pricing yesterday morning at the STC conference hall to educate stakeholders about what it entails.

The main speaker, SRC’s tax consultant, Paul Meaker, explained that transfer pricing looks at controlled arrangements between related parties either within Seychelles companies or with Seychelles entities that have relationships with associates overseas.

“Essentially, it looks at whether the Arms-Length standard has been applied between those arrangements. What we are looking at is the arrangements of what is occurring between the associates and how will it compare to whether the arrangements were conducted between third parties or independent parties,” he stated.

Mr Meaker also noted that the awareness workshop was part of the broader education awareness strategy and a transfer pricing programme that is being rolled out by the SRC, which explains the transfer pricing primary law, updated earlier this year, as well as two pending transfer pricing regulations which will implement related partner dealing schedule.

There will also be a documentation requirement to assist the SRC as part of their risk assessment process. “We also explained some of the compliance activity and risk reviews that are being conducted currently and going forward within Seychelles as well.”

He said the broader picture of the awareness session was part of the government’s initiative, to ensure companies were paying their fair share of taxes in Seychelles.

SRC’s audit manager, Hansha Naiken, said the session was to ensure that companies were aware of the various exercises being carried out by the SRC, including transfer pricing and that SRC would be able to identify if the costs being transferred between the businesses were being done at “arms-length”. An arm's- length transaction refers to a business deal in which buyers and sellers act independently without one party influencing the other.

“These exercises and reviews that we are doing will be to also pick up some information on how the different industries and different companies go about their transfer pricing issues in Seychelles but it also covers a little bit of the international companies,” she stated.

Sunny Esparon