Policy paper

Draft legislation accessible version

Published 20 July 2022

1 Documentation etc relating to transfer pricing

(1) In Part 2 of the TMA 1970 (records), in section 12B (records to be kept for purposes of returns)바카라 사이트�

(a) after subsection (5B) insert바카라 사이트�

바카라 사이트�(5BA) Regulations under this section may make provision, in relation to relevant transfer pricing records specified, or of a description specified, in the regulations바카라 사이트�

(a) as to the form or manner in which those records are to be kept and preserved;
b) by reference to things specified in the transfer pricing guidelines (within the meaning of section 164 of TIOPA 2010 (interpretation in accordance with OECD principles)).바카라 사이트�;

(b) in subsection (6)바카라 사이트�

(i) omit the 바카라 사이트渁nd바카라 사이트� after paragraph (a);
(ii) after that paragraph insert바카라 사이트�

바카라 사이트�(aa) records are 바카라 사이트渞elevant transfer pricing records바카라 사이트� if the Commissioners for Her Majesty바카라 사이트檚 Revenue and Customs reasonably consider that the records may relate to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing);바카라 사이트�.

(2) In Part 3 of Schedule 18 to FA 1998 (duty to keep and preserve records), in paragraph 21바카라 사이트�

(a) after sub-paragraph (5A) insert바카라 사이트�

바카라 사이트�(5AA) Regulations under this paragraph may make provision, in relation to relevant transfer pricing records specified, or of a description specified, in the regulations바카라 사이트�

(a) as to the form or manner in which those records are to be kept and preserved;
(b) by reference to things specified in the transfer pricing guidelines (within the meaning of section 164 of TIOPA 2010 (interpretation in accordance with OECD principles)).바카라 사이트�;

(b) for sub-paragraph (6) substitute바카라 사이트�

바카라 사이트�(6) For the purposes of this paragraph바카라 사이트�

(a) records are 바카라 사이트渞elevant transfer pricing records바카라 사이트� if the Commissioners for Her Majesty바카라 사이트檚 Revenue and Customs reasonably consider that the records may relate to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing);
(b) 바카라 사이트渟upporting documents바카라 사이트� includes accounts, books, deeds, contracts, vouchers and receipts.바카라 사이트�

(3) In Schedule 24 to FA 2007 (penalties for errors)바카라 사이트�

(a) in Part 1 (liability for penalty), after paragraph 3B insert바카라 사이트�

바카라 사이트淓rrors related to transfer pricing records

3C (1) This paragraph applies where바카라 사이트�

(a) a document of a kind listed in the Table in paragraph 1 is given to HMRC by a person (바카라 사이트淧바카라 사이트�),
(b) the document contains an inaccuracy which falls within paragraph 1(2),
(c) P has failed to comply, in relation to specified relevant transfer pricing records that relate to the inaccuracy, with one or more of바카라 사이트�

(i) section 12B of TMA 1970 (records to be kept for the purposes of returns);
(ii) paragraph 21 of Schedule 18 to FA 1998 (duty to keep and preserve records);
(iii) an information notice (within the meaning of Schedule 36 to FA 2008 (information and inspection powers)), and

(d) the document relates to an accounting period in respect of which바카라 사이트�

(i) P, together with one or more persons, constitutes an MNE Group within the meaning of the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations), and
(ii) the MNE Group meets the threshold requirement within the meaning of those Regulations (see regulations 3(2) to (4) of those Regulations).

(2) It is to be presumed that the inaccuracy was careless, within the meaning of paragraph 3, unless바카라 사이트�

(a) the inaccuracy was deliberate on P바카라 사이트檚 part, or
(b) P satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid the inaccuracy.

(3) For the purposes of this paragraph records are 바카라 사이트渟pecified relevant transfer pricing records바카라 사이트� if바카라 사이트�

(a) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and
(b) P is required to keep and preserve those records under either or both of those provisions.바카라 사이트�;

(b) in Part 4 (miscellaneous), in paragraph 18 (agency), in sub-paragraph (6)바카라 사이트�

(i) for 바카라 사이트淧aragraph 3A applies바카라 사이트� substitute 바카라 사이트淧aragraphs 3A and 3C apply바카라 사이트�;
(ii) for 바카라 사이트渋t applies바카라 사이트� substitute 바카라 사이트渢hey apply바카라 사이트�.

(4) In Schedule 36 to FA 2008 (information and inspection powers)바카라 사이트�

(a) in Part 4 (restrictions on powers), in paragraph 21 (taxpayer notices following tax return)바카라 사이트�

(i) in sub-paragraph (3), for 바카라 사이트淒바카라 사이트� substitute 바카라 사이트淓바카라 사이트�;
(ii) after sub-paragraph (8) insert바카라 사이트�

바카라 사이트�(8A) Condition E is that the notice is given for the purpose of obtaining any specified relevant transfer pricing information or documents.
(8B) For the purposes of Condition E, information or documents are 바카라 사이트渟pecified relevant transfer pricing information or documents바카라 사이트� if바카라 사이트�

(a) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and
(b) the taxpayer is required to keep and preserve those records under either or both of those provisions.바카라 사이트�;

(b) in Part 6 (special cases), after paragraph 37B insert바카라 사이트�

바카라 사이트淪pecified relevant transfer pricing documents

37C (1) This paragraph applies to an information notice given to a person (바카라 사이트淎바카라 사이트�) to the extent that the notice refers to specified relevant transfer pricing documents.

(2) Paragraph 18 (documents not in person바카라 사이트檚 possession or power) does not apply in relation to a document in the possession or power of another person who, together with A and any other persons, constitutes an MNE Group (and accordingly the information notice may require A to produce that document).

(3) For the purposes of this paragraph바카라 사이트�

(a) documents are 바카라 사이트渟pecified relevant transfer pricing documents바카라 사이트� if바카라 사이트�

(i) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and
(ii) A, or another person who, together with A and any other persons, constitutes an MNE Group, is required to keep and preserve those records under either or both of those provisions;

(b) 바카라 사이트淢NE Group바카라 사이트� has the same meaning as in the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations).바카라 사이트�;

(c) in Part 9 (miscellaneous provisions and interpretation), in paragraph 58 (general interpretation), at the appropriate place insert바카라 사이트�

바카라 사이트淭IOPA 2010바카라 사이트� means the Taxation (International and Other Provisions) Act 2010;바카라 사이트�.

(5) The amendments made by this section have effect in relation to records, documents and information that the Commissioners for Revenue and Customs reasonably consider may relate to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing) for the purposes of accounting periods beginning on or after 1 April 2023.