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HMRC internal manual

International Manual

Transfer pricing: methodologies: Advance Pricing Agreements: revocation and penalties


  1. In accordance with Section 225, TIOPA 2010, an APA may be revoked by HMRC in accordance with its terms, where the business does not comply with the terms and conditions of the agreement, or where the identified critical assumptions cease to be valid. In practice, when considering nullifying, revoking or cancelling a bilateral APA HMRC will consult with the business and with the Competent Authority of the treaty partner involved. In some cases, a change in the agreement may be possible - see also Paragraph 48 below. Where a date of cancellation of the APA needs to be determined it will be determined by the nature of the event that led to the cancellation.
  2. Where false or misleading information is supplied fraudulently, or negligently, in connection with an application for, or in the process of monitoring, an APA, penalties may be applied, and the APA might be nullified (see Sections 226 and 227 TIOPA).