§ Mr. Rookerasked the Chancellor of the Exchequer how many directions have been given under section 485(3) of the Income and Corporation Taxes Act 1970 each year since 1976.
§ Mr. Moore[pursuant to his reply, 17 January 1984]: No record is kept of the number of such directions.
§ Mr. Rookerasked the Chancellor of the Exchequer how many staff deal with the operation of section 485 of the Income and Corporation Taxes Act; and how many are qualified accountants.
§ Mr. Moore[pursuant to his reply, 17 January 1984]: Major transfer pricing inquiries are conducted by a head office transfer pricing unit, although this does not deal exclusively with section 485 of the Income and Corporation Taxes Act. The unit consists currently of seven staff, of whom one is a qualified accountant. More minor inquiries are part of the day-to-day work of inspectors of taxes in local offices.
§ Mr. Rookerasked the Chancellor of the Exchequer how many appeals have been made following directions under section 485(3) of the Income and Corporation Taxes Act since 12 March 1975; how many are outstanding; and how many have been allowed.
§ Mr. Moore[pursuant to his reply, 17 January 1984]: No record is kept of the number of such appeals.
§ Mr. Rookerasked the Chancellor of the Exchequer what is his estimate of extra revenue following increased tax assessments made as a result of the use of section 485 of the Income and Corporation Taxes Act in each year since 1977.
§ Mr. Moore[pursuant to his reply, 17 January 1984]: The adjustment of transfer prices may not immediately increase the tax chargeable on the company concerned but may affect available allowances or reduce tax losses. Such offsets may result in immediate extra liability upon other companies in the group; if not, they would increase tax liabilities of group companies in later years. The indirect results cannot be quantified so that a meaningful figure of additional revenue resulting from such adjustments cannot be given. Since the beginning of 223W 1974 adjustments to profits made by a central specialist section which deals with major transfer pricing inquiries have been of the order of £200 million. No figures are available for adjustments made by inspectors of taxes in local offices in other cases.