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. (82680)

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:

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:

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