Bureau of Internal Revenue (BIR) chief Romeo D. Lumagui Jr. met with Japan International Cooperation Agency (JICA) chief representative Sakamoto Takema and other agency officials where JICA proposed the institutionalization of an intensive transfer pricing team in the BIR.
Transfer pricing is an accounting tool that allows large businesses with subsidiary operations effectively to generate tax savings.
The main framework for the proposed International Taxation Service was thoroughly discussed, which included the actual Transfer Pricing practice and conduct of capacity development, such as seminars, workshops, knowledge-sharing, and others in collaboration with donors as the Asian Development Bank (ADB), and the Organization for Economic Co-operation and Development (OECD), among others.
Currently, JICA and ADB are working together for the conduct of an interactive workshop on Mutual Agreement Procedure for the BIR to educate concerned revenue personnel on advance pricing arrangement and transfer pricing assessment.
