Part 4Transfer pricing

CHAPTER 4Position, if only one affected person potentially advantaged, of other affected person

Notification to persons who may be disadvantaged

185Notice to potential claimants

1

Subsection (2) applies if—

a

a relevant notice (see section 190) is given to any person,

b

the notice, or anything contained in it, takes account of a transfer-pricing determination, and

c

it appears to an officer that there is a person (“DP”) who is or may be a disadvantaged person by reference to the subject-matter of the determination.

2

The officer must give to DP a notice containing particulars of the determination.

3

A contravention of subsection (2) does not affect the validity—

a

of the relevant notice, or

b

of any determination to which the notice relates.

4

For the purposes of this section, a person is a disadvantaged person by reference to the subject-matter of a transfer-pricing determination if (and only if) the person—

a

is entitled, in consequence of the making of the determination, to make or amend a claim under section 174, or

b

will be entitled, because of section 212(3), to be a party to any proceedings on an appeal relating to the determination.

5

In this section—

  • “officer” means officer of Revenue and Customs, and

  • “transfer-pricing determination” means a determination of an amount that is to be brought into account for tax purposes in respect of—

    1. a

      any assumption made under section 147(3) or (5), or

    2. b

      any advance-pricing-agreement assumptions (see section 222(6)).

186Extending claim period if notice under section 185 not given or given late

1

If there is a contravention of section 185(2), the Commissioners must consider whether, as a result of the contravention, any person has been prejudiced with respect to the making or amendment of a claim under section 174.

2

Subsection (3) applies if—

a

there is a contravention of section 185(2), or

b

a notice required by section 185(2) is given after the relevant notice concerned.

3

The Commissioners may, if they think fit, treat the period for the making or amendment of a claim under section 174 in the case concerned as extended by such further period as appears to them to be appropriate.

4

In this section “the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs.