UK Consults on New Transfer Pricing Reporting Requirement for Cross-Border Related Party Transactions

HMRC has launched a consultation on the draft International Controlled Transactions Schedule (ICTS), a new annual transfer pricing reporting requirement for in-scope multinationals. The ICTS would require the reporting of certain information on cross-border related party transactions and permanent establishment dealings to support automated, data-led risk assessment by HMRC, with the aim of more accurately identifying transfer pricing risk and better targeting compliance activity.

The draft …