According to figures from the 2020-21 tax year, the amount of extra tax collected from transfer pricing investigations into multinational corporations increased 49% from £1.45bn to £2.16bn.

This is the highest yield on record with law firm Pinsent Masons stating that the increase is due to HMRC ‘ramping up its scrutiny of large corporates’ tax arrangements around transfer pricing’.

Transfer pricing is the practice where multinationals shift profits out of the countries where they operate and into tax havens and involves the company selling itself goods and services at an artificially high price.