Written question asked by Austin Mitchell (Labour) on Friday, 30 June 2006, in the House of Commons. It was due for an answer on Tuesday, 4 July 2006. It was answered by Baroness Primarolo (Labour) on Thursday, 6 July 2006 on behalf of the Treasury.

Advance Pricing Agreements

Question: To ask the Chancellor of the Exchequer how many advance pricing agreements (a) have been made and (b) were in force with multinational companies in each year since 2001; and in how many cases in each year (i) enforcement action was taken and (ii) penalties made in transfer pricing disputes.

Answer

The information requested is as follows.(a) and (b) The number of advance pricing agreements within s85 FA99 made in each year (and in force at the end of each year) was:

	Number	In force at end of each year
2000-01	6	5
2001-02	9	14
2002-03	6	16
2003-04	10	22
2004-05	10	22
2005-06	7	18

All agreements relate to multinational companies.(i) The number of occasions where an Inland Revenue/HMRC intervention has resulted in a transfer pricing adjustment to a tax computation are:

	Number
2001-02	1,022
2002-03	1,172
2003-04	1,671
2004-05	1,588
2005-06	1,724

(ii) Penalties following transfer pricing inquiries have been agreed on five cases. These all fall in 2005-06.

Secondary information

Type: Written question
Reference: 82680; 448 c1258-9W
Session: 2005-06
Subjects: Advance pricing agreements
Link: View this Written question on www.publications.parliament.uk

Advance Pricing Agreements

Secondary information

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