It has been a momentous year for transfer pricing developments. TPWeek has compiled a list of the top 10 issues of 2012, which will have significant impact over the next couple of years.
Hindustan Unilever has been involved in a transfer pricing case, heard by the Indian Income Tax Appellate Tribunal (ITAT), which has further clarified the application of the arm’s-length principle.
The Canada Revenue Agency (CRA) has issued a transfer pricing memorandum, endorsing the OECD’s arm’s-length principle and including significant changes in the Canadian transfer pricing regime.
George Osborne, Chancellor of the Exchequer, announced a surprise drop in the UK’s corporate tax rate in his Autumn Statement yesterday, making the UK even more attractive to foreign investment, but taxpayers should beware the transfer pricing risks that will come with it.
Starbucks has said it will review its corporate tax position in the UK, after a damning report by the parliamentary Public Accounts Committee this week and the prospect of a boycott of its stores on December 8. But bowing to political or public pressure is not the right way to conduct business.
The UK Treasury has pledged £77 million ($124 million) to HM Revenue & Customs (HMRC) to tackle tax avoidance by large multinationals over the next two years.
