UK bank payroll tax may influence transfer pricing arrangements
March 31, 2010
In his 2010 budget speech, Alistair Darling, the chancellor of the exchequer, said that £2 billion ($3 billion) has been raised by the UK bank payroll tax. Advisers believe that this may have implications for financial institutions’ transfer pricing arrangements.
Banks often use the bonuses and compensation schemes on which employees are paid as an allocation key when using the profit split method in determining transfer prices for their trading businesses.
Sorry. You must be a subscriber to view this article. Alternatively, why not take a free trial? To subscribe and access this article immediately simply click here or call +44(0)207 779 8380.