Anger over how Starbucks reportedly paid just £8.6m in taxes on £3bn+ UK income since 1998 has re-ignited debate about multinationals’ transfer pricing transactions.
As MPs called for HMRC to investigate how Starbucks reportedly avoided paying corporation tax, the United Nations has published a new draft transfer pricing manual to determine how goods and services are charged by one part of a company to another part in a different country. The document is being discussed at the Committee of Experts on International Cooperation in Tax Matters in Geneva this week.
Critics say lax transfer pricing rules let multinationals structure their businesses so that profits are moved to low or notax jurisdictions to reduce their liabilities. Losses can a...
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.