Worldwide transfer pricing reference guide 2014

Ghana (continued)
Priorities/pricing methods (continued)
Notwithstanding the transfer pricing methods stated, the Commissioner-General may use a different method, or in writing, permit a
taxpayer to use another method. The Commissioner-General may do this when, considering the nature of the transaction, he deems
that the arm’s length price cannot be determined by the use of any of the five stated transfer pricing methods. A taxpayer who intends
to use an unspecified method may have to apply to the Commissioner-General for permission to do so. The taxpayer has to prove that
none of the specified methods can reasonably be applied to determine the arm’s length nature of the intra-group pricing, and that the
unspecified method yields a result consistent with the arm’s length principles.
Transfer pricing penalties
The provisions of the Act on fraud, failure to file returns, failure to maintain records, penalty for underpayment of tax and offenses, may
also apply to the transfer pricing regulations.
Penalty relief
Under Ghanaian law, any tax due and payable, resulting from an adjustment performed by the Commissioner-General will be deemed an
additional tax. Additional penalties can be issued under the Act for offences on fraud, failure to file, refund or the underpayment of tax.
Documentation requirements
The rules state that a person who engages in a transaction with another person with whom it has a controlled relationship shall maintain
contemporaneous documentation detailing the transactions engaged in by that person for each tax year. The regulations provide
guidance on the nature of documentation to be retained. Generally, this follows the OECD requirements.
The taxpayer shall for purposes of these regulations file returns on income in accordance with Section 72 of the Act. The form prescribed
by the Commissioner-General for purposes of filing returns on income shall include a list of disclosures relating to the taxpayers transfer
pricing study.
Documentation deadlines
The Commissioner-General may request additional information from the taxpayer, who would be required to comply with the request
within the required time frame. No guidance is currently available on the duration of that timeframe.
Statute of limitations on transfer pricing assessments
There is no guidance available on the statute of limitations on transfer pricing assessments.
Return disclosures/related party disclosures
A transfer pricing-specific form must be submitted.
Transfer pricing-specific returns
Filing of an Annual Return on transfer pricing transaction is required and forms part of the Corporate Income Tax Return (Form 22a
or Form 22b). The return must be filed no later than four months after the end of the taxpayer’s financial year. The return requires
disclosure on intercompany transactions, related parties to the transactions and transfer pricing methods applied.
Frequency of tax audit and transfer pricing scrutiny by the tax authority
The Commissioner-General may, on receipt of returns filed, examine if the amounts charged to the final accounts, or credited to the final
accounts are within the arm’s length range.
The Commissioner-General may also conduct a transfer pricing audit any time during the year, even when the person has not filed
a return.
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