Tax avoidance schemes on the rise � BURS

Transfer pricing is regarded as a tax avoidance scheme in which multinational corporations shift profits to low tax jurisdictions and avoid taxes in countries where they have substantial trading operations.

On the other hand, base erosion and profit shifting refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.In its latest annual report, BURS said there has been an increase in what it termed, “new generation tax issues”.