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Sanjay Mehta Quoted in Financial Times on HMRC Increasing Pressure on Multinationals to Curb Tax Avoidance

Firm News | October 24, 2017

Sanjay Mehta, a Katten Muchin Rosenman UK LLP Tax partner, was quoted in the Financial Times regarding the estimated £5.8 billion that HM Revenue & Customs (HMRC) in the UK considers may have been avoided by multinationals through diverting profits overseas—an increase of more than 50 percent during the last financial year.

This has led to a sharp increase in HMRC challenges to "transfer pricing" arrangements—transactions between different corporate entities belonging to the same multinational group.

Sanjay noted that ". . . the standards of what is acceptable in transfer pricing have changed. Large corporates are now increasingly finding their transfer pricing methodologies of yesterday being challenged."

Sanjay further commented, "HMRC has invested heavily in the area of transfer pricing as this is an area of growing complexity and there is a recognition of historic underpayment of tax by some large corporates."

("UK taxman ramps up pressure on multinationals to curb tax avoidance" October 24, 2017)