Trade Mispricing

Tax revenue that governments generate from foreign investors is a crucial component of the income streams required to promote socio-economic growth and development. However because of Trade Mispricing there is no guarantee that foreign direct investment (FDI) and international trade will translate into tax revenues for the countries attracting them. In partnership with the Financial Intelligence Centre, TIPS has been involved in a research project that seeks to determine the extent of Trade Mispricing in South Africa.