SCHEDULES

SCHEDULE 20Controlled foreign companies and foreign permanent establishments

PART 3Other amendments

CTA 2010

37

CTA 2010 is amended as follows.

F138

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39

1

Section 938M (group mismatch schemes: controlled foreign companies) is amended as follows.

2

In subsection (1) for the words from the beginning to “company” substitute “ Section 371SL(1) of TIOPA 2010 (assumption that a CFC ”.

3

In subsection (2)—

a

for “chargeable profits” substitute “ assumed taxable total profits ”, and

b

for “Chapter 4 of Part 17 of ICTA” substitute “ Part 9A of TIOPA 2010 ”.

40

In section 1139 (definition of “tax advantage”) in subsection (2) —

a

omit the “or” after paragraph (d), and

b

after paragraph (d) insert—

da

the avoidance or reduction of a charge or assessment to a charge under Part 9A of TIOPA 2010 (controlled foreign companies), or