Taxation (International and Other Provisions) Act 2010 section 193

Interaction between claims under sections 174 and 192(1)

Section 193 prevents double relief by coordinating compensating adjustment claims where both a guarantor company and a lending company seek transfer pricing adjustments in relation to the same security arrangement.

• Where a guarantor company claims under section 192(1) and a lending company claims under section 174, the two claims must be coordinated to avoid double relief.
• When determining the arm's length provision for the lending company's claim, additional credit amounts must be recognised to match the debits attributed to the guarantor company under its section 192(1) claim.
• If the lending company makes its section 174 claim first, and its calculation does not properly account for the guarantor's debits as required, the guarantor company's subsequent claim will be disallowed entirely.
• The "loan provision" for these purposes means the actual provision made between the issuing company (the borrower) and the lending company in relation to the security.