PART XVII TAX AVOIDANCE
CHAPTER IV CONTROLLED FOREIGN COMPANIES
F1748ATerritorial exclusions from exemption under section 748
(1)
Nothing in section 748 prevents an apportionment under section 747(3) falling to be made as regards an accounting period of a controlled foreign company if the company—
(a)
is a company incorporated in a territory to which this section applies as respects that accounting period; or
(b)
is at any time in that accounting period liable to tax in such a territory by reason of domicile, residence or place of management; or
(c)
at any time in that accounting period carries on business through a branch or agency in such a territory.
(2)
The condition in subsection (1)(c) above is not satisfied as regards an accounting period of a controlled foreign company if the business carried on by the company in that period through branches or agencies in territories to which this section applies, taken as a whole, is only a minimal part of the whole of the business carried on by the company in that period.
(3)
The territories to which this section applies as respects an accounting period of a controlled foreign company are those specified as such in regulations made by the Treasury.
(4)
Regulations under subsection (3) above—
(a)
may make different provision for different cases or with respect to different territories; and
(b)
may contain such incidental, supplemental, consequential or transitional provision as the Treasury may think fit.
(5)
A statutory instrument containing regulations under subsection (3) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.