Taxation (International and Other Provisions) Act 2010 section 212

Appeals

Section 212 sets out special rules that apply when a tax appeal involves a transfer pricing dispute, particularly where both parties to the relevant transaction are within the UK tax charge.

• The section applies to standard tax appeals, including appeals against amendments to tax returns and appeals against discovery assessments or determinations
• Special rules are triggered when the appeal involves a question about whether the transfer pricing rules apply, and the transaction is between two persons who are both chargeable to UK income tax or corporation tax on profits from the relevant activities
• Where the special rules apply, both parties to the transaction have the right to participate in the appeal proceedings, not just the taxpayer whose assessment is under appeal
• The tribunal must determine the transfer pricing question separately from any other issues in the appeal, and its decision on that question takes effect as though both parties had been appellants