Schedules
Schedule 5Records relating to transfer pricing
Part 3Amendments relating to corporation tax and income tax
6Information and inspection powers
1
Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.
2
In Part 4 (restrictions on powers), in paragraph 21 (taxpayer notices following tax return)—
a
in sub-paragraph (3), for “D” substitute “E”
;
b
after sub-paragraph (8) insert—
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 “specified relevant transfer pricing information or documents” if—
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 relevant person is required to keep and preserve those records under either or both of those provisions.
8C
For the purposes of subsection (8B), the “relevant person” means—
a
in the case of a tax return made in respect of a chargeable period under section 8A or 12AA of TMA 1970 (trustee’s and partnership returns)—
i
the person, or
ii
a person who was required by a notice under the section concerned to make and deliver the return;
b
in any other case, the person.
3
In Part 6 (special cases), after paragraph 37B insert—
37CSpecified relevant transfer pricing documents
1
This paragraph applies to an information notice given to a relevant person in an MNE Group (“A”) to the extent that the notice refers to specified relevant transfer pricing documents.
2
Paragraph 18 (documents not in person’s possession or power) does not apply in relation to a specified relevant transfer pricing document that—
a
is not in A’s possession or power, but
b
is in the power or possession of another relevant person in the MNE Group concerned (“B”),
(and accordingly the information notice may require A to produce the document).
3
For the purposes of this paragraph—
a
documents are “specified relevant transfer pricing documents” if—
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 is required to keep and preserve those records under either or both of those provisions;
b
“MNE Group” 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);
c
“relevant person in an MNE Group” means—
i
a company,
ii
a trustee of a trust, or
iii
a partner in a partnership,
where that company, the trustees or the partnership, together with one or more other enterprises, constitutes an MNE Group.