Finance Act 2015 (c. 11)

PART 3 Diverted profits tax

Interpretation

114 Other defined terms in Part 3

(1) In this Part—

• “allowable expenses” means expenses of a kind in respect of which a deduction would be allowed for corporation tax purposes;

• “the avoided PE” has the same meaning as in section 86;

• “company” has the same meaning as in the Corporation Tax Acts (see section 1121 of CTA 2010);

• “connected” is to be read in accordance with sections 1122 and 1123 of CTA 2010;

• “designated HMRC officer” means an officer of Revenue and Customs who has been designated by the Commissioners for Her Majesty’s Revenue and Customs for the purposes of diverted profits tax;

• “HMRC” means Her Majesty’s Revenue and Customs;

• “non-UK resident” has the same meaning as in the Corporation Tax Acts (see section 1119 of CTA 2010);

• “non-UK tax” has the meaning given by section 187 of CTA 2010;

• “the notional PE profits” has the meaning given by section 88(5);

• “partnership” includes—

  (a)

  a limited liability partnership to which section 1273 of CTA 2009 applies, and

  (b)

  an entity established under the law of a territory outside the United Kingdom of a similar character to a partnership,

  and “member” of a partnership is to be read accordingly;

• “permanent establishment”, in relation to a company, has the meaning given by Chapter 2 of Part 24 of CTA 2010 (and accordingly section 1141(1) of that Act has effect, for the purposes of this Part, as if the reference to the Corporation Tax Acts included a reference to this Part);

• “small or medium-sized enterprise” means a small enterprise, or a medium-sized enterprise, within the meaning of section 172 of TIOPA 2010;

• “the review period” has the meaning given by section 101;

• “the tax reduction” has the meaning given by section 107(4);

• “UK resident” has the same meaning as in the Corporation Tax Acts (see section 1119 of CTA 2010);

• “UKPE” has the same meaning as in section 81.

(2) For the purposes of this Part a tax may correspond to corporation tax even though—

(a) it is chargeable under the law of a province, state or other part of a country, or

(b) it is levied by or on behalf of a municipality or other local body.