# Income and Corporation Taxes Act 1988, Paragraph 6

Extent: E+W+S+N.I.

(1) This paragraph applies where the non-resident company provides the permanent establishment with goods or services.
(2) If the goods or services are of a kind that the company supplies, in the ordinary course of its business, to third parties dealing with it at arm’s length, the matter is dealt with as a transaction to which the separate enterprise principle applies.
(3) If not, the matter is dealt with as an expense incurred by the non-resident company for the purposes of the permanent establishment.

---
Source: https://www.legislation.gov.uk/ukpga/1988/1/schedule/A1/paragraph/6 (the official version)
Page: https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-A1/paragraph-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.