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.’
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