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Multinational Companies

Volume 957: debated on Thursday 9 November 1978

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asked the Chancellor of the Exchequer if he will make a statement showing how much extra revenue has been obtained from multinational companies as a result of the work of the special unit set up to investigate pricing policies.

Adjusting the prices of multinational companies may not immediately increase tax chargeable on the company concerned but may offset available tax allowances or reduce tax losses. Such offsets may result in immediate extra liability upon other companies in the group; if not they would increase tax liabilities of group companies in later years. The indirect results cannot be quantified, so a meaningful figure of additional revenue resulting from such adjustments cannot be given. Since the beginning of 1974 adjustments to profits made centrally by what has been described as a special transfer pricing unit have been about £50 million.