INTM436030 - Transfer pricing before CTSA
Who does ICTA88/S770 apply to?
S770(1) applies where:
- the buyer is a body of persons over whom the seller has control or
- the seller is a body of persons over whom the buyer has control
- or both the buyer and the seller are bodies of persons over whom the same person or persons has or have control;
This is defined in ICTA88/S132(1) as:
'any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons whether corporate or not corporate'
Most obviously and most commonly, this includes a company.
ICTA88/S773(1) says specifically that 'body of persons' includes a partnership.
A body of persons is not:
- an individual
- a trust
For ICTA88/S770 to apply:
- the controlling party does not have to be a body of persons. It may be an individual or a trust
- the controlled party/parties must be a body of persons
Individuals and trusts may therefore be party to transactions within the scope of ICTA88/S770, so long as they are the controlling party. Control is considered at INTM436040.
