Taxes Consolidation Act 1997 section 835HB

Interaction with provisions dealing with chargeable gains

Section 835HB sets out how transfer pricing rules interact with the computation of chargeable gains and allowable losses, providing that those rules apply only where the market value of the asset exceeds €25 million and subject to a number of other exclusions.

• Transfer pricing rules under section 835C apply to compute chargeable gains or losses on disposals, and to determine the base cost to an acquirer, of chargeable assets supplied under arrangements between associated persons, but only where the market value of the asset exceeds €25 million.
• A range of exclusions disapply the transfer pricing rules where no-gain/no-loss reliefs apply to the disposal or acquisition, where a building society is converted into a company, where a work of art loaned for public display is disposed of, or where an individual disposes of an asset to a company and it remains a chargeable asset of that company.
• An anti-avoidance rule aggregates the market values of assets that once formed part of the same asset where they have been split and disposed of under separate arrangements as part of a scheme to avoid the €25 million threshold.
• Where transfer pricing rules apply, they take precedence over the market value rules elsewhere in the Act, but they will not displace those other rules where doing so would result in a lower tax liability than would otherwise arise.