HMRC collected more than £13bn from tax investigations in 2018/19, up 27% from £10.3bn in 2017/18.
This figure accounts for just over 38% of HMRC’s total £34bn compliance yield for the period, the remainder being estimates of future yield, such as losses prevented, future benefit and accelerated payments.
At the same time, HMRC fines for transfer pricing errors have increased ten-fold over the last two years. According to figures obtained by international transfer pricing consultancy, LCN Legal, HMRC imposed £413,437 in fines in 2018/19, compared to just £45,600 in 2015/16.
Paul Sutton, partner at LCN Legal, commented: ‘The filing deadline for the first country-by-country report was December 2017, which corresponds to the sharp jump in fines imposed by HMRC in relation to transfer pricing arrangements. It is likely that some multinationals had not adequately managed the risks associated with the introduction of Country by Country reporting and had failed to plan for the greater transparency their transfer pricing arrangements would be subjected to.’
HMRC collected more than £13bn from tax investigations in 2018/19, up 27% from £10.3bn in 2017/18.
This figure accounts for just over 38% of HMRC’s total £34bn compliance yield for the period, the remainder being estimates of future yield, such as losses prevented, future benefit and accelerated payments.
At the same time, HMRC fines for transfer pricing errors have increased ten-fold over the last two years. According to figures obtained by international transfer pricing consultancy, LCN Legal, HMRC imposed £413,437 in fines in 2018/19, compared to just £45,600 in 2015/16.
Paul Sutton, partner at LCN Legal, commented: ‘The filing deadline for the first country-by-country report was December 2017, which corresponds to the sharp jump in fines imposed by HMRC in relation to transfer pricing arrangements. It is likely that some multinationals had not adequately managed the risks associated with the introduction of Country by Country reporting and had failed to plan for the greater transparency their transfer pricing arrangements would be subjected to.’
