Response to proposals to reform transfer pricing, permanent establishments and DPT

In our response to the consultation (members-only content) we voiced our broad support for the proposal to align UK legislation more closely with the OECD rules. However, the proposed adoption of the current OECD definition of a dependent agent permanent establishment both in UK domestic law and as a default treaty negotiating position is a more substantive change. We believe this could disrupt existing business structures, for example in the investment management industry, in ways that the Government does not intend. We have urged the Government to tread carefully.