Section 217C | Conditions for being assessed under this Part at the UTPP rate

(1)Unassessed transfer pricing profits of a company may be assessed under this Part at the UTPP rate only to the extent that—

(a)the provision to which the profits relate has an effective tax mismatch outcome for the accounting period to which the profits relate,

(b)the tax design condition is met, and

(c)the unassessed transfer pricing profits do not arise wholly from excepted loan relationship arrangements.

(2)In this section “excepted loan relationship arrangements” means—

(a)any arrangements that would produce debits or credits under Part 5 of CTA 2009 (loan relationships and deemed loan relationships) (“a loan relationship”), or

(b)a loan relationship and a relevant contract (within the meaning of Part 7 of that Act (derivative contracts)) taken together, where the relevant contract is entered into entirely as a hedge of risk in connection with the loan relationship.