In October 2018, the EU Joint Transfer Pricing forum agreed the Report on a coordinated approach to transfer pricing controls within the EU (the “Report”). The report establishes best practices by issuing various recommendations for both taxpayers and tax administrations, and encourages closer cooperation in the field of transfer pricing controls.
The report is aimed at ensuring that tax administrations use the possibilities provided for under the Directive on Administrative Cooperation in the Field of Taxation (Directive 2011/16/EU) on a real time basis for the purpose of achieving a high degree of coordination, smooth communication and exchange of information during a transfer pricing control.
It is increasingly common to see tax administrations across the EU working together where there are cross-border arrangements in which they have a shared interest. The UK is making increasingly use of these collaborative approaches, either by international exchange of information or multilateral controls within the EU.