Thin capitalisation: practical guidance: the Advance Thin Capitalisation Agreement process: role of Business, Assets & International
Specialists at Business, Assets & International have largely moved away from being “case owners” except for the largest and most complex cases, and now provide advice and support to the work done by local specialists, mainly located within Local Compliance and the Large Business Service. The “head office” team now spends more time on policy, litigation, training and written guidance. The casework is now carried out or supervised by those Transfer Pricing Group members and International Issues Managers within Local Compliance and the Large Business Service.
The Transfer Pricing Team at Business Assets & International is responsible for the ATCA regime, with responsibilities divided between private equity/structured finance and intra-group funding cases. Responsibility for the 2005 anti-arbitrage legislation and for the unallowable purpose legislation at CTA09/S441 (formerly FA96/SCH9/PARA13) also lies within Business, Assets & International.
Very few ATCA applications are retained by Business, Assets & International (or referred back to them for their sole attention). When Business, Assets & International does become involved in specific applications or enquiries, it is likely to be:
- in a one-off advisory capacity, or as an occasional contributor towards the Local Compliance or LBS casework
- where the caseworker or team is faced with situations or arguments which are novel or outside their experience and that of local specialists
- where the size and complexity of the case warrants such involvement
- where issues arise which Business, Assets & International wishes to be involved in or handle directly (see INTM511050)
- where the case is moving towards litigation
- where there appears to be some kind of stalemate or deadlock, and before HMRC decides whether to withdraw from ATCA negotiations or pursue an enquiry through formal means
- in the course of transfer pricing governance.