HMRC issue briefing on taxing multinationals
The above briefing has been published and is designed to explain how HMRC is working with other countries to stop some multinational businesses from avoiding payment of tax.
The briefing provides a concise summary of action not just by the UK in this area but on an international basis and summarises actions in the context of the Base erosion and profit shifting project which as readers will be aware is jointly overseen by the G20 group of countries and the OECD.
Also outlined is the work of the Global Forum on Transparency and Exchange of Information for Tax Purposes which is seeking to help expand a global exchange of information network that has enabled countries with less-developed tax systems to enlarge the number of international tax treaties with other countries. The Forum on Tax Administration also gets a mention.
Probably less widely known is the work of the Joint International Tax Shelter Information Centre which is also outlined in the briefing.
In the area of exchanging information with other tax administrations, the Briefing outlines the importance of understanding how much a multinational operating in the UK owes in tax to the UK, how its global business model operates and how the UK business fits within this.
Advance pricing agreements (APAs) are also highlighted.
The full text of the briefing is published on here.