Taxes Management Act 1970

[F1 30D Transfer pricing records: carelessness for the purposes of section 30B U.K.

(1) This section applies where—

(a) the situation mentioned in section 30B(1) has been brought about by a person within section 30B(5) (“P”) as regards a partnership statement in respect of a relevant period,

(b) the situation relates to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing) for the purposes of that period, and

(c) the relevant person (whether or not P) has failed to comply, in relation to specified relevant transfer pricing records that relate to the calculation, with either or both of—

(i) section 12B (records to be kept for the purposes of returns), and

(ii) an information notice (within the meaning of Schedule 36 to the Finance Act 2008 (information and inspection powers)).

(2) It is to be presumed for the purposes of section 30B that the situation mentioned in section 30B(1) was brought about carelessly by P, unless—

(a) the situation was brought about deliberately by P, or

(b) the relevant person satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid the situation.

(3) For the purposes of this paragraph—

(a) “relevant period” means a period in respect of which—

(i) the partnership to which the partnership statement relates, together with one or more other enterprises, 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);

(b) “relevant person” means a person who was required by a notice under section 12AA to make and deliver the return in respect of the relevant period;

(c) records are “specified relevant transfer pricing records” if—

(i) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B, and

(ii) the relevant person is required to keep and preserve those records under that section.]

Textual Amendments

F1 Ss. 30C, 30D inserted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 5 para. 4