United Kingdom’s Revenue Authority Increases TP Profit

~1-minute read. This article is part of our CrossBorder Audit Alert series.

Steady Increase of Transfer Pricing Revenue

In the years from 2011/12 to 2016/17, the HMRC secured GBP 5.914 billion of additional tax by challenging the transfer pricing arrangements of multinationals. The total amount secured in 2016/17 was GBP 1.6B, which was approximately a 50% increase from 2015/16. Since 2008, the HMRC has increased the number of staff dealing with international tax risks, including transfer pricing.As of March 31, 2017 there were 82 full time equivalent staff in the transfer pricing group. The diverted profits tax yield in 2016/17 was a 90% increase from the previous year number of GBP 31M. In 2016/17 145 DPT notifications were received compared to just 48 in 2015/16.