Tax probe at Honda and Nissan

13 April 2012

JAPANESE car makers Honda and Nissan have been investigated by UK tax authorities over transfer pricing, it was claimed today.

Honda Motor Europe, which acts as the Honda group's European re-invoicing centre, and Nissan Motor (GB), which is the distribution and marketing arm of Nissan in the UK, were at the centre of the probe, according to a report in the Financial Times.

The allegations centred around pricing goods below their marked value to transfer profit to low-tax jurisdictions.

The Inland Revenue said transfer pricing inquiries 'are focused on cases where it appears that there is a significant risk that taxable profits might have been materially under-reported,' the newspaper reported.

At Nissan Motor (GB) the Inland Revenue has questioned its transfer pricing policy back to its date of incorporation in l990, the FT said.

Nissan Motor (GB) told the newspaper that the inquiry by the Inland Revenue had been resolved, but did not provide further information. Honda declined to comment in the report.

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