The Upper Tribunal in Union Castle agrees with HMRC that the issue of shares is a “provision” to which transfer pricing can apply. The recently published diverted profits tax statistics show a steep increase in both the numbers of notifications by companies and the preliminary notices and charging notices issued by HMRC. The AG’s opinion in C&D Foods, if followed by the CJEU, may call into question the UK’s treatment of input tax on costs where an intended share sale is aborted.
An earlier version of this article was first published in the 12 October 2018 edition of Tax Journal.
