Business - FDs press Revenue on transfer pricing
The 100 Group of FDs has called on the Inland Revenue to issue guidelines to end months of uncertainty over how internal company transfer pricing arrangements can be used by multinationals.
David Alvey, finance director of BAT Industries and chairman of the group’s tax committee, said he wanted the Revenue to clarify the situation.
‘In the finance bill, the government says it wants to change the current transfer pricing rules, but after months of discussions we are no further forward. It wants us to consult on the changes but the devil is in the detail. At the moment there is a vacuum where the detail ought to be, which makes consultation difficult,’ he said.
Alvey said he would be stepping up the group’s campaign in the coming weeks. The group fears Organisation of Economic Co-operation and Development rules will be amended by the UK government. ‘If the rules are different in each country it could cause disputes between fiscal authorities,’ warned Alvey.
See also analysis, ‘Multinationals prepare for battle’