INTM431060 - What is transfer pricing all about?: Does TIOPA10/Part4 only apply to companies?

While most transfer pricing issues involve company-to-company transactions, TIOPA10/Part4 (previously ICTA88/SCH28AA) actually applies in any situation where there is a provision between two connected persons and one person controls the other, or both are controlled by a third party. The controlled person (or persons) must be a body corporate or a partnership; the controlling party however could be an individual. The term ‘control’ is defined and covers for example structures where a trust is inserted between an individual and a company.

TIOPA10/Part4 (previously ICTA88/SCH28AA) can also apply to a provision between a person and the branch of a connected company.