Multinationals face £1.1 billion in extra tax


Multinational corporations were hit with £1.1 billion in extra tax demands last year after HMRC successfully challenged the prices charged between companies in the same multinational group for goods and services.

Providing goods and services to companies in the same group is part of normal commercial practice. However, some multinational groups try to manipulate the prices charged to reduce the tax they have to pay.

HMRC examined profit calculations under Organisation for Economic Co-operation and Development (OECD) transfer pricing rules to ensure there was no manipulation and the right amount of tax was paid.



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