Multinationals have either changed their corporate structures or transfer pricing arrangements as a result of the UK’s diverted profits tax, according to the tax office.
The tax, introduced in 2015, targets companies with contrived tax planning arrangements. Profit diversion represents the largest corporation tax risk, according to His Majesty’s Revenue & Customs.
A research report released by the HMRC Tuesday shows that at least one business set up a new transfer pricing policy team. Another moved to more detailed documentation of policies and actions. And a third large business shifted to a different method for pricing transactions.
The changes reflect ...