INTM422080 - Transfer pricing: methodologies: Advance Pricing Agreements: evaluation

Evaluation

36. On receipt of an application HMRC will evaluate its contents and will seek clarification and further information from the business as necessary. The examination of the application should be a co-operative process in which the transfer pricing issues are discussed openly and access to relevant supporting information and documentation is made available. Lack of co-operation in these respects may result in HMRC declining to give any further consideration to the application. As part of the process, HMRC will seek to agree a timeline to ensure the APA progresses adequately and as efficiently as possible. Such timelines will be tailored to the facts of each case and would be dependent on agreement with the other competent authority.

37. Where a bilateral APA is being sought, HMRC will expect the business to continue to make relevant information available at the same time to each administration involved, and in turn will itself keep the treaty partner informed about the progress of its examination of the APA request, will seek to discuss with the treaty partner key issues arising at the earliest opportunity and will keep the business informed about the progress of the bilateral process. Where possible, HMRC will work with the respective treaty partner(s) to agree joint information requests in the hope that such requests will lessen duplication for the business. Whilst the finalising of a bilateral agreement with a treaty partner is a government-to-government process, HMRC is generally prepared to participate in, and encourages, joint meetings involving the business and the other administrations to assist in the exploration and evaluation of key factual issues.