PTP's Tax Tip No.4 ' Are there transfer pricing issues?

Q: My company, in which I'm the sole shareholder, has a turnover of £40m and I employ 270 people. My wife's company, in which my wife and I own 50% of the shares each uses a spare office in my head office. Her phone calls are put through by our receptionist and, other than a couple of sheets of headed paper, that's all she takes. I've never charged her for anything. Do I have transfer pricing issues?

A: Yes. Five of them! The office rent, phone charges, use of reception staff, use of stationery and use of your company's branding via the headed paper.

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.