Part 4Transfer pricing
CHAPTER 5Position of guarantor of affected person's borrowing liabilities
192Attribution to guarantor company of things done by F1borrower
(1)
On the making of a claim, the guarantor company is, to the extent of the reduction mentioned in F2subsection (1)(c) of section 191 (so far as it meets the condition in subsection (1)(d) of that section), to be treated for all purposes of the Taxes Acts as if it (and not the F3borrower)—
F4(a)
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F5(b)
was the person that owed the borrowing liabilities under the borrowing transaction, and
(c)
had paid any interest or other amounts paid under it by the F6borrower.
(2)
Subsection (1) is subject to subsection (3).
(3)
Where the F7borrower’s liabilities under the borrowing transaction are the subject of two or more guarantees (whether or not provided by the same person), TD must not exceed TR, where—
TD is the total of the amounts brought into account by the guarantor companies because of subsection (1), and
TR is the total amount of the reductions within section 191(1)(c).
(4)
Provision about claims under subsection (1) is made by—
section 193 (interaction between claims under subsection (1) and claims under section 174), and
section 194 (general provision about claims under subsection (1)).
(5)
In subsection (1) “the Taxes Acts” has the meaning given by section 118(1) of TMA 1970.
F8(6)
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