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Top firms open new front in war for specialist tax talent

$3.4bn tax settlement by GSK to IRS and recent £52m adjustment in DSG Retail v HMRC have made the headlines, both specifically relating to transfer pricing, and would indicate a potential growth market in terms of materiality of tax charges. On the back of successful cash collection exercises like this the bullish attitude of tax authorities will inevitably increase litigation as opposed to the more usual arbitration route. In both cases the legal documentation and contractual aspects of the transfer pricing were identified as fatal flaws, a technical element the traditional accounting firms are often unable to service appropriately. Expansion of high-level tax capabilities in law firms seems a pretty practical response given the current market

15-Sep-2009

11:26 am