HMRC announces plans for a consultation on simplifying transfer pricing – Andrew Parkes

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As part of its Tax Administration and Maintenance day, HMRC has announced that it will open a consultation in May looking to simplify and update:

• Diverted Profits Tax;
• Transfer Pricing; and
• The UK’s rules on Permanent Establishments (taxing non-resident businesses in the UK).

Andrew Parkes, National Technical Director at Andersen LLP said:

“We hope that HMRC puts real simplification on the table and does not just look to tinker around the edges. Removing UK to UK transfer pricing would be very welcome and an easy win, as it is a pointless part of the legislation; while the best simplification for the Diverted Profits Tax is to scrap it.”

For further detail on Transfer Pricing matters, please contact Andrew Parkes on andrew.parkes@uk.Andersen.com.

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