On-line
tool: Step 4 - Turnover threshold
Does the UK taxpayer's group have turnover
exceeding EUR 50 million?
Click the answer: EXCEEDS
NOT
Guidance to help you
determine the answer:
Turnover is net of
VAT.
The threshold is expressed in Euros. Conversion to sterling is
required to be done at average exchange rates over the period of
account. At exchange rates in Spring
2004, EUR 50 million is approximately £34 million.
These thresholds are applied on a current year, annual basis.
This raises the practical difficulty that enterprises which experience
an unexpected surge in turnover close to the year-end could be tipped
into the regime for the whole year, at a stage when it may be too late
to correct any transfer prices for transactions earlier in the year if
they do not meet the arm’s length test.
A sudden strengthening of the £ versus the Euro could presumably
have the same effect.
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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