Chief Executive Officer of the American Chamber of Commerce in Jamaica (AMCHAM) Gail Abrahams is concerned about the many ramifications that could negatively impact businessmen and women who currently engage in cross-border transactions, following the recent passing of the Transfer Pricing Legislation.

“A significant portion of our membership are affected by this new policy [transfer pricing] and therefore we believe that our members and the wider business community need to be equipped with the right information,” Abrahams said.

Cognisant of the challenges that could arise from this legislation, AMCHAM, the 30-year-old, non-profit organisation which promotes trade between Jamaica and the United States, will be hosting a seminar under the theme ‘Transfer Pricing: Does it affect you?’ It will be focused on educating and sharing best practises with AMCHAM members on how to navigate their businesses in light of the policy introduction.

The seminar, which will be held at the Jamaica Pegasus Hotel on February 16, will explore issues including the implications of the new legislation; how it will affect the international businesses or those businesses planning to conduct transactions overseas; and discussion surrounding the possibility of transfer pricing affecting the intellectual property and managerial services. The seminar is due to begin at 12:30 and is expected to run for 90 minutes.

It will feature leading local and international experts, armed with the requisite skill set and knowledge that will prepare businesses to cope with changes which will accompany the policy. The presenters will include lead Transfer Pricing Controversy Professional at Ernst & Young in the United States E Miller Williams Jr Williams consults with multinational corporate clients on a national basis regarding complex transfer pricing matters, with an emphasis on international pricing controversy, advanced pricing agreements, competent authority and intercompany planning and structuring. Williams, who has over 24 years experience in transfer pricing consultancy, has also served as chair of the Transfer Pricing Committee of the American Bar Association Tax Section and a member of the Georgia Bar Association.

Another notable person who will address participants is Country Managing Partner and Tax Partner at Ernst&Young Office in Jamaica Allison Peart. She has among her many achievements, extensive auditing experience, provided tax advice and implemented tax strategies in several companies in Canada, Europe, Jamaica, the Caribbean and United States of America. She is a member of the board of directors at the American Chamber of Commerce and Institute of Chartered Accountants of Ontario. She also serves as member and council member at the Institute of Chartered Accountants of Jamaica and chairman of the Taxation Committee.

“Our speakers are experts and therefore this seminar will address all questions and of course dispel any complications that persons may have. AMCHAM is committed to our membership and will therefore address any issue/s that will impact their businesses,” Abrahams said.

Transfer pricing has been described as the pricing of goods and services sold between related or connected legal entities in an enterprise. Therefore, the transfer price is the cost of the goods paid to the parent company to the subsidiary when a subsidiary sells goods to a parent company.

The Transfer Pricing Policy was first approved by Cabinet in 2011 and subsequently passed by a huge majority in the House of Representatives as part of the ammended 2015 Income Tax Act. This followed lengthy counterarguments from a few Opposition members including the spokesperson on finance Audley Shaw who said that the policy would strangle businesses and obstruct the flow of investment into the country.

But the Minister of Finance Dr Peter Phillips maintained that the transfer pricing rules and legislation are designed to ensure these transactions result in a fair allocation of profits between the various countries in which the company does business.