Taxes Consolidation Act 1997 section 835B

Meaning of associated

Section 835B defines when two persons are "associated" for the purposes of the transfer pricing rules in Part 35A.

• Two persons are associated where one participates in the management, control or capital of the other, or where the same third person participates in the management, control or capital of both.
• A person is only regarded as participating in the management, control or capital of another person if that other person is a company controlled by the first person.
• A company is treated as controlled by an individual if it is controlled by that individual together with persons connected with the individual, meaning relatives within the meaning of section 433(3)(a) — that is, a spouse, civil partner, ancestor, lineal descendant, brother or sister.
• Where a partnership holds shares in a company, it is necessary to look through the partnership to the individual partners' entitlements to the assets and income of the partnership when testing for control.