Did UK lose on GSK settlement?

One thought on the GSK settlement over transfer pricing the other week.

The coverage tended to focus on Glaxo having a big tax bill (and less on the fact that it was less than the company had reserved for).

But a more interesting point from a UK point of view is that the profits giveing rise to a tax bill were disputed in that both the UK and the US were arguing the toss over where they should be recorded. If the UK, rather than the US, had won that argument, would the UK now be a few billion pounds richer?

It’s a question that, were MPs well briefed on the issue, and minded to tackle the incoming HMRC boss on it, might make for an interesting discussion.

Tackling tax avoidance from UK nationals, after all, makes UK cash move around the system. Tackling transfer pricing avoidance means that cash that otherwise would go elsewhere comes to the UK instead.

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