New UK Transfer Pricing Data Rules Pose Challenges for Companies

UK-based multinationals face more compliance challenges under new transfer pricing data requirements proposed this week by the tax authority, according to tax practitioners.

They must submit more detailed financial data on an annual basis to His Majesty’s Revenue and Customs, potentially exposing them to greater scrutiny, they said.

“The UK is seeking much more granular data than other comparable countries. If you are a UK-headquartered multinational, that’s going to be very challenging,” Joel Cooper, head of UK transfer pricing at EY, said in an interview.

Multinational firms would be required to report information on cross-border related-party transactions to HMRC through ...