Corporation Tax Act 2010 section 357ND

Transactions treated as being on arm's length terms

Section 357ND requires that transactions between a company's Northern Ireland Regional Establishment (NIRE) and any other part of the same company must be treated as if they were conducted on arm's length terms.

• The section applies the separate enterprise principle to internal transactions involving the NIRE.
• Any transaction between the NIRE and another part of the same company must be priced as though the parties were independent of each other.
• The terms of such transactions are deemed to be whatever would have been agreed between unconnected parties dealing at arm's length.
• This prevents profits being artificially shifted into or out of the NIRE, which benefits from the lower Northern Ireland corporation tax rate.