Government holds talks with CAF
GOVERNMENT and the Development Bank of Latin America (CAF) held discussions in Port of Spain earlier this month about transfer pricing operations in Trinidad and Tobago.
Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided.
Transfer pricing allows for the establishment of prices for the goods and services exchanged between subsidiaries, affiliates, or commonly controlled companies that are part of the same larger enterprise. It can lead to tax savings for corporations.
CAF is an international banking institution that promotes sustainable development models through credit, non-refundable resources and support in technical and financial structuring of projects in the public and private sectors in Latin America.
A statement from the Finance Ministry said the discussions took place from March 5-23. Finance Minister Colm Imbert, other ministry officials, representatives of the Inland Revenue Division and CAF officials took part.
The meetings were part of a conversation between TT and CAF, in the framework of a project for the control of transfer pricing operations in TT, which CAF is funding.
The ministry was optimistic that there is an opportunity arising from these talks to create an innovative transfer-pricing regime tailored to TT.
From 2016-2021, TT received US$1.3 billion in approved loans from CAF for several initiatives including roadworks, covid19 response and tourism infrastructure. Last July, CAF approved a US$120 million loan to boost digital transformation.
"Government holds talks with CAF"