Inland Revenue gets tougher on transfer pricing

The UK is gaining a reputation for increasingly aggressive treatment of transfer pricing by tax authorities, according to a survey of companies operating under the new UK transfer pricing regime published by KPMG. The new regime has lead to an increase in Inland Revenue enquiries - by almost three times compared to three years ago. Of those firms subject to an enquiry, almost half were required by the Inland Revenue to make adjustments - and possibly pay a higher tax bill.