There is no evidence of transfer pricing as it relates to logs being exported from here to China, the Guyana Forestry Commission (GFC) has said.
There have been accusations in prior years that transfer pricing is occurring but former Auditor-General Anand Goolsarran in his forensic audit report of the GFC noted that when the logs are shipped to the destination countries, the final cost takes into account costs relating to insurance and freight as well as other costs for transporting the logs to locations within the countries where they are sold.
In addition, the company exporting the logs will have to apply its own mark-up in order to derive a profit. Therefore, the final price of the logs (whether by way of transfer pricing or otherwise) would be significantly higher than the Free on Board (FOB) invoice price on
