Part 2Charge to corporation tax: basic provisions
C1F1CHAPTER 3AUK RESIDENT COMPANIES: PROFITS OF FOREIGN PERMANENT ESTABLISHMENTS
Pt. 2 Ch. 3A applied by 2011 c. 11, Sch. 19 para. 15Z2(3) (as inserted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 2)
Anti-diversion rule
18IF2Exemptions from anti-diversion rule
1
The exemptions referred to in section 18G(1)(c) are the exemptions set out in Chapters 11 to 14 of Part 9A of TIOPA 2010 (controlled foreign companies: exemptions from the CFC charge).
2
In applying those Chapters for the purposes of section 18G(1)(c)—
a
references to section 371BA(2)(b) of TIOPA 2010 are to be read as references to section 18G(1)(c),
b
the assumptions set out in subsection (3) are to be made, and
c
section 371VF(3) of TIOPA 2010 (definition of “related” person) is to be read with the omission of paragraphs (b) and (c).
3
For the purposes of subsection (2)(b), assume—
a
that the permanent establishment which company X has in territory X is a separate company from company X,
b
that the separate company is a CFC resident in territory X,
c
that period X and company X's other accounting periods for corporation tax purposes are accounting periods of the CFC for the purposes of Part 9A of TIOPA 2010,
d
that the CFC's assumed total profits for period X are the adjusted relevant profits amount,
e
that the CFC's assumed taxable total profits for period X are the same as the CFC's assumed total profits for period X,
f
that the CFC is connected with company X and is also connected or associated with any person with whom company X is connected or associated, and
g
that any person who has an interest in company X also has an interest in the CFC.
4
Chapters 11 to 14 of Part 9A of TIOPA 2010 are also to be applied subject to sections 18IA to 18ID below.
Pt. 2 Ch. 3A inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 4, 31