{"id":62805,"date":"2022-05-04T09:21:53","date_gmt":"2022-05-04T08:21:53","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=62805"},"modified":"2022-05-04T09:21:53","modified_gmt":"2022-05-04T08:21:53","slug":"country-by-country-reporting-is-beating-transfer-mispricing-as-i-always-said-it-would","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2022\/05\/04\/country-by-country-reporting-is-beating-transfer-mispricing-as-i-always-said-it-would\/","title":{"rendered":"Country-by-country reporting is beating transfer mispricing, as I always said it would"},"content":{"rendered":"<p>As <a href=\"https:\/\/www.accountancyage.com\/2022\/04\/29\/hmrc-takes-more-aggressive-approach-as-transfer-pricing-investigations-soar\/\" target=\"_blank\" rel=\"noopener noreferrer\">Accountancy Age<\/a> has reported:<\/p>\n<blockquote><p>A 49% uptick in the amount of extra tax collected from investigations into large corporates shifting profits overseas is an indicator that\u00a0<a href=\"https:\/\/www.accountancyage.com\/2021\/11\/05\/forrestbrown-leads-landmark-rd-tribunal-victory-against-hmrc\/\" target=\"_blank\" rel=\"noopener noreferrer\">HMRC<\/a>\u00a0is ramping up its scrutiny multi-national tax avoidance arrangements, according to specialist law firm Pinsent Masons.<\/p>\n<p>\u201cHMRC is now much more aggressive in tackling what it sees as artificial profit shifting, and much more stringent in its interpretation of what makes an acceptable transfer pricing arrangement,\u201d said Steven Porter, partner and head of tax disputes and investigations at Pinsent Masons.<\/p>\n<p>According to new\u00a0<a href=\"https:\/\/www.gov.uk\/government\/publications\/transfer-pricing-and-diverted-profits-tax-statistics-2020-to-2021\/transfer-pricing-and-diverted-profits-tax-statistics-2020-to-2021\">figures<\/a>\u00a0from the 2020\/21 tax year, the amount of extra tax collected from transfer pricing investigations into multinational corporates increased from \u00a31.45bn to \u00a32.16bn \u2013 HMRC\u2019s highest yield on record.<\/p><\/blockquote>\n<p>So, why the uptick? Because country-by-country reporting data is available, of course.\u00a0 I <a href=\"http:\/\/visar.csustan.edu\/aaba\/ProposedAccstd.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">first created country-by-country reporting in 2003<\/a>. I <a href=\"http:\/\/www.taxresearch.org.uk\/Documents\/CBC2012.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">campaigned pretty tirelessly<\/a> for it <a href=\"https:\/\/www.taxresearch.org.uk\/Blog\/category\/country-by-country\/\" target=\"_blank\" rel=\"noopener noreferrer\">from then until 2015<\/a> when the OECD adopted it, <a href=\"https:\/\/www.oecd.org\/tax\/beps\/guidance-on-country-by-country-reporting-beps-action-13.htm\" target=\"_blank\" rel=\"noopener noreferrer\">very largely as I first proposed it<\/a>. The aim was to beat transfer mispricing. It is.<\/p>\n<p>I should ask for a cut (that's a joke, by the way).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As Accountancy Age has reported: A 49% uptick in the amount of extra tax collected from investigations into large corporates shifting profits overseas is an<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2022\/05\/04\/country-by-country-reporting-is-beating-transfer-mispricing-as-i-always-said-it-would\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67,26,79,107,10,33,50,32,97,110],"tags":[],"class_list":["post-62805","post","type-post","status-publish","format-standard","hentry","category-accountancy","category-accounting","category-country-by-country","category-hmrc","category-tax-avoidance","category-tax-compliance","category-tax-gap","category-tax-havens","category-tax-justice","category-transparency"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/62805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=62805"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/62805\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=62805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=62805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=62805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}