Tax laws tighten around megacorps

Through abuse of a practice known as transfer pricing, multinational corporations have been able to reduce their tax obligation in Botswana by manipulating the pricing of products and services between local subsidiaries and their cross-border parent or sister companies.

By fudging the prices of intra-group management, legal and IT services, as well as the cost of loan/s guarantees and royalties amongst others, some multinational corporations have been able to lower their local tax obligations.