[INTM441050] Transfer Pricing: Transactions and Structures: business structures: marketing and distribution – commissionaires: practicalities
The previous page (INTM441040) introduced the concept of commissionaire arrangements. Here, we consider some practical points which case teams may encounter.
Identifying a commissionaire arrangement
There are a number of ways to recognise that goods are being sold in the UK using a commissionaire.
•The accounts for a buy/sell distributor may actually state a change in activities to that of a commissionaire. There may be a reorganisation, whereby the activities of a subsidiary that used to manufacture and distribute goods are transferred to two new companies, one carrying out a limited risk form of manufacture, the other being a commissionaire.