On-line
tool: Step 1 - Taxpayer is a company
If the taxpayer is a company, then you need to
know what kind of entity the potentially-related party is.
If the other party is a
company
Company A is related to Company B if A controls
B, or B controls A, or
A and B are under common control (by another company or other
person/s).
If the other party is a
partnership
Company A is related to partnership B if A controls
B, or B controls A,
or
A and B are under common control (by any other
person/s).
If the other party is any
other person
A company and any other person (such as an
individual or trust) are related to one another if the latter controls
the former (but not vice-versa).
The transfer pricing rules are primarily seen as applying to companies
and partnerships, but it is worth noting that the rules can apply to
other legal “persons”, such as individuals and trusts, if they control
a company or partnership.
This means, for instance, that if an
individual owns a company, the transfer pricing rules potentially apply
to the individual as well as the company (in relation to transactions
between them).
The 'small print'
The
comments on this page and elsewhere on this website are of a
general nature. It is not practicable in a general review such as
this
to consider every convolution of the UK transfer pricing rules or of
any other tax law that may be relevant. Moreover, these pages
naturally do not take into account the specific facts relating to any
particular taxpayer. Therefore, although the guidance in this
website
should give a good indication of the likely position under the transfer
pricing rules, taxpayers should obtain professional advice to verify
the position, or carry out their own analysis.
Neither
TPS nor its affiliates
and employees
make any representation regarding the
completeness or accuracy thereof and they accept no responsibility for
any loss or damage incurred as a result of any user acting or
refraining from acting upon anything contained on these pages or upon
its omission therefrom.
|