INTM453020 - Transfer pricing: governance structure and processes: Governance procedures for transfer pricing enquiries

What types of enquiry are within the governance?

The transfer pricing governance applies from 1 April 2008 to any enquiry or potential enquiry where ICTA88/SCH28AA or the arm’s length principle may be invoked so it covers

• transfer pricing of goods and services
• post-return thin capitalisation
• private equity leveraged buy-outs
• attribution of profit to permanent establishments (but not the question of whether a permanent establishment exists)

The transfer pricing governance does not apply to

• Advance Pricing Agreements
• Advance Thin Capitalisation Agreements
• Mutual Agreement Procedure/Competent Authority work

despite the fact that Transfer Pricing Group (TPG) resource is sometimes used in this work. These areas are subject to their own separate governance.

There are occasions when case teams will engage in transfer pricing discussions with the customer before the submission of a return. Such discussions, which may take place in real time, are in the nature of risk assessment and fall outside the transfer pricing governance. However, case teams should nevertheless liaise with the relevant Transfer Pricing Specialist where appropriate. See INT461020 for further advice on this.