Taxes Management Act 1970 section 30C

Transfer pricing records: carelessness for the purposes of section 29

Section 30C creates a presumption that a trustee has been careless for discovery assessment purposes where they have failed to keep or provide required transfer pricing records relating to profits or losses calculated under the transfer pricing rules.

• Where a trustee or their representative has caused a loss of tax relating to transfer pricing calculations and has failed to keep required transfer pricing records or comply with an information notice, a presumption of carelessness applies
• The trustee is presumed to have been careless unless they can show the loss of tax was either deliberate or that they took reasonable care to avoid it
• The rules apply only where the trust forms part of a multinational enterprise group that meets the country-by-country reporting threshold under the BEPS regulations
• The records in question are specific transfer pricing records that regulations require the relevant person to keep and preserve