TaxCorporate TaxPwC demands delay to start of transfer pricing

PwC demands delay to start of transfer pricing

PricewaterhouseCoopers has slammed the government for its plans to introduce transfer pricing legislation despite businesses having just 16 weeks to prepare.

Link: ‘Rushed’ transfer pricing rules could fall foul of European law

Announced in the pre-Budget report, Gordon Brown extended transfer pricing legislation to intra-company deals between subsidiaries based in the UK. Previously the legislation was only required for deals between subsidiaries based in different countries.

The Big Four firm carried out a study among 82 of its clients. 92% said they need at least six months to prepare for the legislation.

PwC has also raised issue with the cost to business of the required changes. 63% expect to spend at least £50,000, and 13% say it will cost more than £250,000.

‘It’s understandable that the government wants to put its house in order but one has to question why they have to put so much pressure on business in such a short time scale,’ said Steve Hasson, head of transfer pricing at PwC. ‘Our clients have voiced their opinion – over 50% would like to see the start date delayed by more than a year.’

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter