Taxation (International and Other Provisions) Act 2010 section 219

Meaning of "associate" in section 218(2)(e)

Section 219 defines when two persons are considered "associates" for the purposes of advance pricing agreements.

• Two persons are associates if one directly or indirectly participates in the management, control or capital of the other at the time the relevant provision is made or imposed.
• Two persons are also associates if the same person or persons directly or indirectly participate in the management, control or capital of both of them at the relevant time.
• A special rule applies to oil sales: two persons are associates if the oil sales provisions of the transfer pricing rules require them to be treated as controlled by the same person.
• The terms "direct participation" and "indirect participation" take their meaning from the transfer pricing provisions in Chapter 2 of Part 4 of the Act.