UK opens multiple criminal fraud probes following MNE tax avoidance investigations, HMRC officials confirm

The UK’s HM Revenue and Customs has opened multiple criminal fraud investigations following investigations into corporate transfer pricing practices, a January 10 Financial Times article reports, quoting HMRC officials.

“HMRC is investigating arrangements to divert profits to establish what is really happening in the UK and overseas,” an HMRC spokesperson said, according to the Financial Times. “Most of these investigations are resolved by the business agreeing to change its transfer pricing and pay additional corporation tax. However, where there is evidence of dishonesty then, as in all dishonesty cases, we will consider opening a criminal investigation,” the official explained.

The Financial Times article (behind a paywall) can be accessed at this link. For further discussion, see a report by George Turner of Tax Watch.

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