Engagements › Northbridge Marine Holdings › Draft agreement: Crew supply to the tankers

Draft Agreement From The Policy

Crew supply to the tankers. Every clause is drafted from the transfer pricing policy and the functional analysis, and says where it came from. Anything the file does not settle is left open, in brackets.

1. Shared services agreement

   Between Northbridge Crew Services Ltd (the Provider) and Northbridge Tankers Ltd (the Recipient).

   Source: Transaction record

2. 1. The services

   The Provider supplies the services described in Schedule 1. The Recipient decides which services it orders; the Provider decides how they are delivered.

   Source: Functional analysis: who decides what and how

3. 2. Remuneration

   The Recipient pays the Provider's costs of the services plus a mark-up of 6.00% on those costs.

   Source: Group transfer pricing policy §2

4. 3. Payment

   Invoices are payable within 30 days.

   Source: Group transfer pricing policy

5. 4. Risks

   [to be agreed: no risk analysis in the file]

   Source: Functional analysis, risks · open point

6. 5. Arm's length

   The parties intend the terms to be at arm's length and will adjust them if a review shows they are not.

   Source: OECD Guidelines 1.6; Income Tax Law s.33(6)

7. 6. Term and law

   Effective from 1 January of the year; [term, termination and governing law to be agreed by the parties].

   Source: Not in the file · open point