MEDIA AT A GLANCE

More African Economies Curb Revenue Leakages: More countries in Africa are set to adopt rules on transfer pricing by companies, with a view to curbing revenue leakages in their economies. Transfer pricing is an international taxation technique, which refers to the setting, analysis, documenting and adjustment of charges made between related parties for goods, services, or use of property (including intangible property). It is a valid business practice for associated companies in the pricing of inter-related sales within a group. The policy is expected to serve as a tool to help stimulate revenue growth by blocking fiscal leakages through offshore tax havens. In Africa, just like Nigeria, Uganda has also revealed plans to introduce the tax legislation, in order to regulate the prices companies set for transactions between subsidiaries.  Both countries would be joining South Africa, Ghana and Cameroon that had previously strengthened their legislation in this area.  Financial Analyst at Profound Securities Limited, Lagos, Mr. Chijioke Obiagwu, said: “While transfer pricing is a valid business practice, it (sometimes) creates a suspicion for the tax authorities who may think it is a form of profit shifting with the result of providing avenues for tax avoidance”: ThisDay, Page 25.

Eurozone Crisis: Spain Announces Budget Cuts amid Protests: Recession-plagued Spain unveiled new austerity measures on Wednesday designed to slash 65 billion euros from the public deficit by 2014 as Prime Minister Mariano Rajoy yielded to EU pressure to try to avoid a full state bailout. The conservative leader announced a 3-point hike in the main rate of Value Added Tax on goods and services to 21 percent and cuts in unemployment benefits and civil service pay and perks in a speech interrupted by jeers and boos from the opposition. "These measures are not pleasant, but they are necessary. Our public spending exceeds our income by tens of billions of euros," he told parliament. Analysts said the draconian savings plan tearing up several of Rajoy's campaign promises, showed Madrid was already under de facto supervision from Brussels even though it has not requested a sovereign bailout and retains access to bond markets. Some said the tax increases could exacerbate the recession. Reuters reported that Spain won softer deficit targets from its European Union partners this week and also negotiated rescue aid of up to 100 billion euros ($123 billion) from the euro zone's bailout fund for its crippled banking sector: ThisDay, Page 45.