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HMRC internal manual

International Manual

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HM Revenue & Customs
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Transfer pricing: operational guidance: examining transfer pricing reports: legislation

Transfer pricing legislation

The report will usually contain an examination of the relevant transfer pricing legislation. This part of the report is often included solely for the client’s benefit.

The report might also detail the legislation of other countries if the report was originally prepared for another fiscal authority. Suggestions such as that ‘the UK legislation works along similar lines to this legislation’ should be treated with caution; the scope of TIOPA10/Part 4 may go significantly beyond that of the other countries’ legislation. For example, the US Section 482 transfer pricing legislation is different in some important ways from the UK legislation, in substance as well as form. Remember that the company’s transfer pricing policy has to pass the test of UK legislation. It is not enough for UK transfer pricing purposes to show that the transfer pricing in the territory of the affiliate with which the UK company trades is arm’s length for the purposes of that territory’s transfer pricing legislation.