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South Africa recently tightened its transfer pricing and disclosure requirements, implementing global standards. This was an important step to enable the South African Revenue Service (SARS) to enforce transfer pricing rules and to counter undesired base erosion through profit shifting. However, the question remains what else can be done to address impermissible transfer (mis-) pricing and to stimulate investment into South Africa, as tax collections have not been where they should be and it is expected that further expenditure will be proposed in the 2019 Budget?
Transfer Pricing compliance requirements in South Africa have been significantly tightened and a modern transfer pricing system, including electronic transfer pricing return submission, has been put in place.
Is the accounting profession experiencing a crisis of credibility? Current events locally and internationally are demanding higher levels of accountability in the accounting and auditing professions. Unethical accounting and auditing practices in South Africa have reverberated globally, with the reputations of large accounting and auditing firms severely damaged by their links to public service corruption and financial misrepresentation by large multinational companies like Steinhoff.
Transfer pricing relates to the transfer of goods or services between members of a multinational group which are tax residents in different countries. Instead of increasing existing taxes or levying new taxes, a way to tackle the looming budget deficit may be to properly implement transfer pricing rules and to ensure appropriate enforcement by the South African Revenue Service (SARS) of such rules.
The need for ethical leadership is much clearer and more urgent now than it has ever been since the dawn of the new South Africa. Unfortunately, it took massive corruption to elevate the importance of ethical leadership in the public consciousness, and so the cost has been high to get us to this level of awareness.
As the influence of digital transformation continues to weigh on African emerging markets, digital trends and communication platforms are impacting how accounting and finance professionals deal with and manage their businesses.
In November 2017, the South African Institute of Chartered Accountants (SAICA) convened what is now known as the “Ntsebeza Inquiry” [also referred to as the Inquiry]. The aim of the Inquiry is that it should investigate, independently, allegations that some of its members who were/are employed by KPMG, had allegedly engaged in conduct in contravention of the SAICA Code of Professional Conduct.
Professor Leon van Vuuren | Executive: Business and Professional Ethics | The Ethics Institute | firstname.lastname@example.org | www.tei.org.za | Recently, several prominent and previously reputable organisations...