Written question asked by Austin Mitchell (Labour) on Monday, 6 February 2006, in the House of Commons. It was due for an answer on Wednesday, 8 February 2006. It was answered by Alun Michael (Labour) on Tuesday, 14 February 2006 on behalf of the Department of Trade and Industry.

Company Law

Question: To ask the Secretary of State for Trade and Industry if he will seek to introduce legislation to require companies to publish details of their transfer pricing policies.

Answer: Transfer pricing describes the charge or cost that is made when one company transfers or ““sells”” a product to another company within the same group of companies (often in different countries). There are no Companies Act disclosure requirements; there are tax implications that are governed by guidelines and requirements.We have no plans to introduce legislation to require companies to publish details of their transfer pricing policies.

Secondary information