§ Mr. Craigenasked the Chancellor of the Exchequer whether the Inland Revenue has had occasion to invoke its powers under Section 485 of the Income and Corporation Taxes Act 1970 in respect of the transfer pricing practices of 595W multinational companies operating in the United Kingdom; and, if so, on how many occasions.
§ Mr. Denzil DaviesYes. It is not usual, however, for transfer pricing adjustments under the section to depend upon a formal invoking of the board's powers. Adjustments may be made by agreement following informal discussions either at head office or in local tax districts and precise information about their numbers is therefore not available. Formal orders have been necessary in only three cases in the last two and a half years.