The arm’s-length principle is internationally used as a means of curbingtax avoidance through transfer pricing. However, when trade is conducted electronically, the application of this principle faces major challenges. The purpose of this paper is to analyse our law so as to determine whether this principle is still relevant in curbing transfer principle in the e-commerce era. The article will begin by explaining the meaning of certain concepts. Then an explanation will be offered of what the arm’s-length principle entails and how it has been challenged by e-commerce. The article will also pointout international views about transfer pricing and e-commerce. Finally, recommendations will be made after considering the relevance of South Africa’s Electronic Communications and Transactions Act 25 of 2002.
Source: By Annet Wangana Oguttu (University of South Africa)
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.
MINIMUM REQUIREMENTS TO REGISTER
The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.