The Senate passed changes to the Income Tax Act on Friday, in an attempt to target tax evaders.
The Amendment also seeks to incorporate a new transfer pricing regime. Transfer Pricing is used to ensure that transactions between related companies are appropriately priced, based on market conditions.
This prevents companies from artificially inflating their profits. Government Senator Mark Golding, who tabled the legislation, says it’s key in addressing the loss of revenues caused by multinationals seeking to transfer their profits offshore.
However, Opposition Senator Marlene Malahoo Forte, is concerned the changes affect those who do pro bono work for overseas entities.
But Senator Golding says the legislation will only target multinational corporations.