UK tax authorities have released information on the diverted profits tax, transfer pricing program, and patent box.
According to September 13 data, during the 12 months prior to March 31, 2017, tax authorities issued 16 diverted profits tax preliminary notices, 14 DTP charging notices, and collected £281 million in additional tax. Many predict these numbers will be higher in the next report.
HM Revenue and Customs transfer pricing challenges yielded almost £1.6 billion in the 2016–17 fiscal year, a record recovery compared to the previous five fiscal periods. The report notes that coming country-by-country reports on large multinationals will aid HMRC in its transfer pricing risk assessment.
The tax agency reported that 32 applications were made for advance pricing agreements in the 2016–17 fiscal period. Average time to reach an agreement now stands at about 32.8 months.
Mutual agreement procedure cases resolved in the 2016–17 fiscal period totaled 36, the lowest amount of the six most recent 12-month periods. The agency added 80 cases during the period, the highest number of the six periods.
A report on the uptake of the UK patent box, issued September 14, concludes that tax benefits of £652 million were claimed during the most recent period of 2014–15. This was a large increase as compared to the £365 million figure for the previous fiscal year. About 97 percent of the relief claimed went to large companies.
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