Taxes Management Act 1970 section 30D

Transfer pricing records: carelessness for the purposes of section 30B

Section 30D creates a presumption that errors in partnership statements relating to transfer pricing were caused by carelessness, where the person responsible for the return has failed to keep or provide specified transfer pricing records.

• Where an error in a partnership statement relates to a transfer pricing calculation and the person responsible has failed to keep required transfer pricing records or respond to an information notice, carelessness is automatically presumed
• The presumption of carelessness can only be displaced if the error was deliberate, or if the person satisfies HMRC or a tribunal that reasonable care was taken
• The rule applies only to partnerships that form part of a multinational enterprise group meeting the country-by-country reporting threshold (consolidated group revenue of €750 million or more)
• The specified transfer pricing records are those set out in regulations under section 12B that the person responsible for the partnership return is required to keep and preserve