§ Mr. Rookerasked the Chancellor of the Exchequer if he will make a statement on the total amount of increased tax assessments which have been made on multinational companies as a result of the work of the special unit set up to investigate pricing policies.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 10th January 1977; Vol. 923, c. 420], gave the following information:
Precise figures are not available, but adjustments which have been made centrally to profits since the beginning of 1974, relating in some cases to a number of years, are somewhere about £20 million. In addition, adjustments have been made by local inspectors in some smaller cases. Figures for these cannot readily be obtained. There will be a continuing effect on future liabilities in some cases.
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§ Mr. Rookerasked the Chancellor of the Exchequer if the special unit investigating the pricing policies of multinational companies is co-operating with any foreign tax authorities; and if he will list them.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 10th January 1977; Vol. 923, c. 420], gave the following information:
Exchange of information with other countries about transfer pricing is authorised by more than 60 double taxation agreements, and a number of exchanges take place under these powers. They are most frequent with major trading countries, such as the USA, France and Germany.
§ Mr. Rookerasked the Chancellor of the Exchequer if he is satisfied with the co-operation from industry with the special unit investigating the pricing policies of multinational companies.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 10th January 1977; Vol. 923, c. 420], gave the following information:
The co-operation of industry in inquiries relating to transfer prices is as satisfactory as its co-operation in other dealings with the Inland Revenue.
§ Mr. Rookerasked the Chancellor of the Exchequer if he has received any complaints about the activities of the special unit set up to investigate the pricing policies of multinational companies; and if he will indicate from whom he has received them.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 10th January 1977; Vol. 923, c. 420], gave the following information:
No. There is no special unit, but some difficult cases involving possible transfer price adjustments are handled centrally within the Inland Revenue.