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UK Launches Consultation on Introduction of Secondary Adjustments into Domestic Transfer Pricing Legislation

|Proposed Changes|United Kingdom
United Kingdom

On 26 May 2016, UK Treasury and HMRC launched a public consultation on whether to introduce secondary adjustment rules into domestic transfer pricing legislation. The potential rules would address the current issue that primary transfer pricing adjustments are only effective for tax purposes, while any cash benefit from non arm’s length pricing can accumulate in an overseas company. According to the consultation, the government's preferred secondary adjustment rule would treat the excess prof…

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