The latest HMRC TP and DPT Statistics 2019/20 are now available. There are three interesting facts about these statistics:

  1. Interestingly although the 'yield' has increased since last year it is still below the peak years of 2016-2018 which followed the introduction of the Diverted Profits Tax.
  2. The number of settled TP enquiries is lower than in 2018/19 and the average time to settle is still over 2.5 years.
  3. APA applications are up on last year, however there seems to be a significant back-log as the average time to reach agreement has climbed to 4 years.

It is clear that TP remains the cornerstone of HMRC audit activity. It is likely that this trend will continue going forward, particularly as the impact of COVID-19 continues to build pressure on public finances.