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EITI glossary

This glossary is compiled by the EITI International Secretariat and is only provided as a resource.

Terms of reference

Describes the purpose, background and objectives for a project (e.g. EITI Report) or group (e.g. multi-stakeholder group). It also includes roles and responsibilities of those involved. For short: ToR.

The Association for the Extractive Industries Transparency Initiative

The legal entity of the EITI, governed by the EITI Articles of Association.

ToR

Terms of reference: Describes the purpose, background and objectives for a project (e.g. EITI Report) or group (e.g.multi-stakeholder group). It also includes roles and responsibilities of those involved.

Transfer price

The price at which one company buys and sells goods or services or shares resources with another division in the same company in another country. Aggressive transfer prices may inflate profits in low-tax jurisdictions and depress profits in high-tax countries. For example, the sale of mineral output from one subsidiary to another at a price under the market value may serve to reduce the revenue that the company reports to the government, and thus limit the tax payments that the company owes. Similarly, purchasing a good or a service from a related company at an inflated price, a company can raise its reported costs thereby increasing deductions and decreasing income tax liabilities.

Transparency

Openness and public disclosure of activities.