Borrowing by non-resident banks: permanent establishment acting as agent or intermediaryU.K.
10(1)This paragraph applies where a permanent establishment—
(a)borrows funds for the purposes of another part of the non-resident company, and
(b)in relation to that borrowing acts only as an agent or intermediary.
(2)In such a case, in accordance with the separate enterprise principle—
(a)the profits attributable to the permanent establishment, and
(b)the capital attributable to the permanent establishment under section 11AA(3),
shall be that appropriate in the case of an agent acting at arm’s length, taking into account the risks and costs borne by the establishment.