Transfer pricing rules for transactions involving low-tax countries : United Kingdom

Concerns have been expressed that certain UK companies are employing tax management strategies to shelter income and profits in low-tax jurisdictions, usually by investing in or transacting with affiliates established there. Some perceive that the tax authorities inherently view transactions involving low-tax jurisdictions warily, prompting cause for investigation. This article explores the attitude of the United Kingdom with regard to the transfer pricing of transactions involving low-tax countries.