HM REVENUE AND
CUSTOMS News Release (NAT 40/07) issued by The Government News
Network on 20 June 2007
Next stage of
HMRC's Review of Links with Large Business gets underway
Two consultation documents aimed at enhancing the way HM Revenue
& Customs (HMRC) deals with transfer pricing enquiries and
rulings and clearances, were published today.
Consultation document "HMRC approach to transfer pricing for
large business" looks at:
* ways in which HMRC can better
target its transfer pricing enquiries and focus on the right
issues;
* resolving transfer pricing enquiries faster, with an
18 month completion timetable as the norm.
* devoting more
resources to transfer pricing with more specialist input
Welcoming the announcements, the Paymaster General, the Right
Hon. Dawn Primarolo MP said:
"Publishing these two consultations today marks an important
practical next step in providing business with certainty on
specific tax issues, by taking forward the recommendations of Sir
David Varney's 2006 Review of Links with Large Business.
Ensuring the effectiveness and cost-efficiency of the rules in
these complex areas of Transfer Pricing and Clearances is an
important shared objective for both business and Government.
Working together is essential to achieving that joint objective".
The other document, "Giving Certainty to Business through
Rulings and Clearances" considers:
* giving businesses who seek HMRC's view on significant
issues both pre and post transaction, a binding view within 28
days; and
* providing binding rulings across all relevant
taxes for businesses that provide clear plans for investment.
Dave Hartnett, Director General Business Strategy, said:
"We are moving from an ad hoc approach on these issues to a
more project managed system - businesses want to have greater
certainly earlier and this is what we are offering them. Gone
will be the days when a decade can pass before issues are resolved
around transfer pricing.
Last November we promised to consult on these issues during the
summer and have done so. We want to work closely with business,
agents and representative bodies to get these proposals right. Now
we need business to play its part and help build a constructive
and transparent relationship with HMRC."
Copies of the consultations can be viewed at:
http://staging.hmce.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ConsultationDocuments&columns=1&id=CURRENTCONSULTATIONS
Notes for Editors
1. The 2006 Review of Links with Large Business set out the
outcomes that business and HMRC wanted to see from a relationship
based on trust and transparency and a shared commitment to
efficient and effective collection of the right tax at the right time.
2. The report '2006 Review of Links with Large
Business' published in November 2006 outlined 14 key
proposals that would together deliver these outcomes http://www.hmrc.gov.uk/large-business/review-outcomes.htm.
At Budget 2007, HMRC published an outline delivery plan alongside
the actual delivery of some of the proposals http://www.hmrc.gov.uk/large-business/review-2007.htm.
3. All responses on "Giving certainty to business through
Rulings and Clearances" should be sent by 3 September 2007 to Jane.Webb@hmrc.gsi.gov.uk.
4. All responses to "HMRC Approach to transfer pricing for
large business" should be sent by 15 September 2007 to roy.warden@hmrc.gsi.gov.uk
Issued by HM Revenue & Customs Press Office
Website: http://www.hmrc.gov.uk