HMRC figures indicate increased focus on transfer pricing

The amount of corporation tax under consideration by HM Revenue & Customs in connection with profit shifting increased by 60 percent, to £3.8 billion, in the year ending March 2016, according to figures obtained by the law firm Pinsent Masons. This suggests that the tax authority may be taking a fresh look at transfer pricing issues, the firm said …

“The tax under consideration is an estimate of the maximum potential additional tax liability in each case before we have carried out a full investigation of the specific facts or analysis of relevant law,” HMRC said in the October 2016 edition of “Measuring Tax Gaps”. “It is not actual tax either owed or unpaid; it is a tool to guide our inquiries …”

Read more: My news story for Tax Analysts, 1 December (paywall).