Taxation (International and Other Provisions) Act 2010 section 209

Determinations exempt from requirement for Commissioners' sanction

Section 209 sets out the circumstances in which a transfer pricing determination does not need to be formally sanctioned by the Commissioners for HMRC, because the taxpayer and HMRC have already reached an agreement on the relevant matters.

• Where an HMRC officer and a taxpayer have agreed on the matters covered by a transfer pricing determination, formal Commissioners' sanction is not required, provided that agreement is in force at the relevant time and covers the amount in question.
• The "relevant time" depends on the type of action being taken — it is generally when the relevant notice (such as an amendment notice, closure notice, assessment notice, or discovery determination notice) is given to the taxpayer.
• An agreement is considered "in force" only if it has been made or confirmed in writing, a 30-day cooling-off period has elapsed, and the taxpayer has not withdrawn from the agreement during that cooling-off period.
• The 30-day cooling-off period runs from the date the agreement is made in writing or, if it was made verbally, from the date an HMRC officer sends the taxpayer a written notice setting out the terms of the agreement.