Section GC 10 — Income Tax Act 2007: Compensating arrangement: person receiving more than arm’s length amount

GC 10 Compensating arrangement: person receiving more than arm’s length amount When this section applies (1) This section applies when— (a) a person (the taxpayer ) is a party to a transfer pricing arrangement with another person; and (b) an adjustment is made for a tax year under either— (i) section GC 7 to an amount payable by the taxpayer under the transfer pricing arrangement; or (ii) section GC 8 to an amount receivable by the taxpayer under the transfer pricing arrangement: (c) an amount of consideration receivable by the taxpayer in the same tax year, or the preceding or next tax year, for a supply (the compensating supply arrangement ) to the same person is more than an arm’s length amount: (d) either— (i) the transfer pricing arrangement involves goods, services, money, other intangible property, or anything else of the same type as that acquired in the compensating supply arrangement; or (ii) the amount of consideration actually payable or receivable in the transfer pricing arrangement is set having regard to the amount of consideration receivable under the compensating supply arrangement. Receiving arm’s length amount (2) The amount received by the taxpayer in the compensating supply arrangement is treated as being an amount equal to the arm’s length amount determined under section GC 13 , for each of the following purposes: (a) the calculation of their income tax liability for a tax year: (b) [Repealed] (c) the determination of the obligation of another person to withhold under Part R (General collection rules) from the amount. Defined in this Act: amount , arrangement , income tax liability , supply , tax year , transfer pricing arrangement , Compare: 2004 No 35 s GD 13(10) Section GC 10(2)(b): repealed (with effect on 30 June 2009), on 6 October 2009, by section 247(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).