On-line
tool: Step 3 - Linked
enterprises
To the data from the accounts of the taxpayer (or its consolidated
group) must be added 100% of the data for any "linked enterprises', to
the extent that they have not already been included.
For the full
definition of linked enterprises, see the EC Recommendation.
However, the test
boils down to tracing control up and down the chain. This is not
quite the same as the concept of control discussed in Step 1 (that
would be too easy, wouldn't it?), but it is similar.
Most linked enterprises will already be in the consolidated accounts of
the ultimate parent company, but one obvious potential addition is the
data of any majority shareholder that is not a body corporate.
Back to groups.
The 'small print'
The
comments on this page and elsewhere on this website are of a
general nature. It is not practicable in a general review such as
this
to consider every convolution of the UK transfer pricing rules or of
any other tax law that may be relevant. Moreover, these pages
naturally do not take into account the specific facts relating to any
particular taxpayer. Therefore, although the guidance in this
website
should give a good indication of the likely position under the transfer
pricing rules, taxpayers should obtain professional advice to verify
the position, or carry out their own analysis.
Neither
TPS nor its affiliates
and employees
make any representation regarding the
completeness or accuracy thereof and they accept no responsibility for
any loss or damage incurred as a result of any user acting or
refraining from acting upon anything contained on these pages or upon
its omission therefrom.
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