Analyzing the challenges of the transfer pricing issue in Burkina Faso, Customs Inspector, Laurent Saba Kienou, called on the authorities to legislate on the issue to reduce customs revenue losses.

“At the customs level, there is no specific regulation in Burkina Faso relating to the control of transfer prices. This is why we are calling for the adoption of a law allowing the customs administration to control transfer prices, in order to reduce revenue losses,” said customs inspector, Laurent Saba Kienou.

Mr. Kienou spoke on Tuesday, October 22, 2024 in Ouagadougou, during his defense for obtaining the diploma of customs inspector at the National School of Customs. His study entitled: “Problems of transfer pricing in Burkina Faso: challenges and perspectives” earned him a very good mention from the jury.

Transfer pricing is the price at which goods, services and intangible assets are exchanged within a multinational enterprise group, according to Mr. Kienou.

“When a company linked to its parent company i
mports goods into Burkina Faso, these goods must be valued as if they were transactions between independent parties. The price at which the company will deliver the product to its subsidiary established in Burkina Faso must be comparable to the market price,” explained the customs inspector.

However, according to him, in some cases, these related companies set prices below the price practiced on the market, while there is a relationship between the transfer price and the customs value.

As a result, when this price is lower than the price practiced on the market, this reduces the amount of customs duties, he deplored.

For the jury’s rapporteur, Colonel Jules Bertrand Damiba, the candidate “very well” carried out a study on a subject that is outside the ordinary customs field.

“This study gives us avenues to explore in terms of value control when it occurs between parties linked to a commercial transaction,” said the jury member.

And he added: “It allowed us to explore very good work, to provide relevant a
nalyses and observations for a scientific document that can be used by the academic world, students and the tax world.”

Colonel Damiba also stressed that the issue of transfer pricing is quite complex, hence the need to have “clear and obvious legislation, to allow auditors to have regulatory bases to be able to do a good job.

Source: Burkina Information Agency