PART XVII TAX AVOIDANCE
CHAPTER IV CONTROLLED FOREIGN COMPANIES
F1752 Apportionment of chargeable profits and creditable tax
(1)
This section applies in any case where an apportionment under section 747(3) falls to be made as regards an accounting period of a controlled foreign company.
(2)
Where—
(a)
the persons who have relevant interests in the controlled foreign company at any time in the relevant accounting period have those interests by virtue only of directly or indirectly holding ordinary shares of the company,
(b)
each of those persons satisfies the condition that he is either—
(i)
resident in the United Kingdom throughout that accounting period, or
(ii)
resident in the United Kingdom at no time in that accounting period, and
(c)
no company which has an intermediate interest in the controlled foreign company at any time in the relevant accounting period has that interest otherwise than by virtue of directly or indirectly holding ordinary shares of the controlled foreign company,
subsection (3) below shall apply.
(3)
Where this subsection applies, the apportionment of the controlled foreign company’s chargeable profits and creditable tax (if any) for the relevant accounting period shall be made among the persons who have relevant interests in the company at any time in that period in direct proportion to the percentage of the issued ordinary shares of the controlled foreign company which, in accordance with section 752B, each of those relevant interests represents.
(4)
Where subsection (3) above does not apply, the apportionment of the controlled foreign company’s chargeable profits and creditable tax (if any) for the relevant accounting period shall be made on a just and reasonable basis among the persons who have relevant interests in the company at any time in that period.