News: Until the end of 2017, all multinational corporations in the UK are required to publish their tax strategy

Until the end of this year, transnational corporations are obliged to publish their tax strategy

If company fails to comply with this requirement it will be fined.

Each transnational corporation that meets certain criteria, from 2017 should:

• Annually show the document which defines the strategy;

• Annually publish online its tax strategy for the UK;

• Annually provide easy access to the online strategy, before the publication of its updated edition for the next year.

The strategy necessarily includes:

1. Possible risk levels acceptable in the company or in the group of companies in the meaning of UK taxation

2. Interaction of the group of companies, as well as interaction of companies with the tax authorities of Great Britain

The requirement affects the following corporations:

• Those that have revenues in the UK more than 200 million pounds, or have assets in the UK with value over 2 billion pounds.

• Those that have annual revenues of more than 750 million euros and have a tax presence in the UK.

What are the consequences of not meeting the requirements?

As mentioned above, non-compliance leads to a deterioration in reputation, which in the long term may cause attention from the tax authorities of the UK and other jurisdictions.

Failure to comply with the requirements will lead to the fine which equals to 7,500 pounds, an additional fine of a similar size will be applicable after six months of non-publication and a monthly fine in case of failure to provide publication afterwards.

For more information, please contact Law & Trust International.