RSM Tanzania Thought Leadership Series – Annual Financial Statements: The Hidden Tax & Transfer Pricing Dimension Every CFO Should Recognize

Annual Financial Statements (AFS) are often viewed as a compliance exercise; meeting IFRS/IAS standards, satisfying auditors, and informing shareholders. But in today’s regulatory environment, AFS have become a tax and transfer pricing trigger point.

Why it matters:

• Revenue Authorities now scrutinize AFS as a first line of inquiry into TP compliance and domestic tax law alignment.
• A disclosure that is correct under IFRS may still create tax exposure if inconsistent with TP policies.
• CFOs face a dual lens problem: what satisfies investors under IFRS may raise red flags for tax authorities.

In this article, our Tax & Transfer Pricing Team explains how AFS can quietly shape tax risk, why CFOs must read disclosures through both IFRS and tax lenses, and the steps to safeguard against unintended controversies.