The warning came just a week after watch manufacturer Swatch was compelled to issue a public denial of claims by whistle blowers that the company was guilty of evading tax through the use of transfer price arrangements.
While transfer pricing is a ‘very, very common’ tool used by global corporations to reduce their overall tax burden, authorities have now begun to clamp down on its use.
‘The scope for these elaborate plans will become less common,’ said Rajesh Sharma, corporate tax director at Smith & Williamson. He added that an increasing number of countries were legislating to prevent its use.
A Swatch statement said that the group ‘did not violate laws’ and that it is its policy to ‘vigorously respect all national and international laws, including tax laws’.
MTD represents 'the single most significant change to the UK’s system of taxation in recent times', says Knill James partner Nick Rawson. So, how prepared are SMEs for digital tax reporting?
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Unincorporated businesses under the VAT threshold given an extra year to prepare before MTD becomes mandatory