§ 21. Mr. J. W. Rooker
asked the Chancellor of the Exchequer if he will make a statement on the operation of Section 485 of the Income and Corporation Taxes Act 1970 regarding artificial transfer pricing by multi-national corporations.
§ Mr. Denzil Davies
The Inland Revenue seeks to operate the provisions of Section 485 as effectively as it can to prevent the loss of tax which could follow from artificial transfer pricing by companies doing business with overseas affiliates. Although it has not found widespread abuse, such artificial transfers 685W can lead to serious loss of tax, and action has to be taken to prevent it.