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House of Commons

Session 2009 - 10 Internet Publications Other Bills before Parliament

Taxation (International and Other Provisions) Bill

Taxation (International and Other Provisions) Bill vi
Disclosure of information
129    Disclosure where relief given overseas for tax paid in the United Kingdom
Interpretation of double taxation arrangements
130    Interpreting provision about UK taxation of profits of foreign enterprises
131    Interpreting provision about interest influenced by special relationship
132    Interpreting provision about royalties influenced by special relationship
133    Special relationship rule for royalties: matters to be shown by taxpayer
Assessments
134    Correcting assessments where relief is available
Part 3
Double taxation relief for special withholding tax
Introductory
135    Relief under this Part: introductory
136    Interpretation of Part
Credit etc for special withholding tax
137    Income tax credit etc for special withholding tax
138    Amount and application of the deemed tax under section 137
139    Capital gains tax credit etc for special withholding tax
140    Provisions about the deemed tax under section 139
141    Credit under Chapter 2 of Part 2 to be allowed first
Calculation of income or gain on remittance basis where special withholding tax levied
142    Conditions for purposes of section 143
143    Taking account of special withholding tax in calculating income or gains
Certificates to avoid levy of special withholding tax
144    Issue of certificate
145    Refusal to issue certificate and appeal against refusal
Part 4
Transfer pricing
Chapter 1
Basic transfer-pricing rule
146    Application of this Part
147    Tax calculations to be based on arm’s length, not actual, provision
148    The “participation condition”
Taxation (International and Other Provisions) Bill vii
Chapter 2
Key interpretative provisions
Meaning of certain expressions that first appear in section 147
149    “Actual provision” and “affected persons”
150    “Transaction” and “series of transactions”
151    “Arm’s length provision”
152    Arm’s length provision where actual provision relates to securities
153    Arm’s length provision where security issued and guarantee given
154    Interpretation of sections 152 and 153
155    “Potential advantage” in relation to United Kingdom taxation
156    “Losses” and “profits”
“Direct participation” in management, control or capital of a person
157    Direct participation
“Indirect participation” in management, control or capital of a person
158    Indirect participation: defined by sections 159 to 162
159    Indirect participation: potential direct participant
160    Indirect participation: one of several major participants
161    Indirect participation: sections 148 and 175: financing cases
162    Indirect participation: sections 148 and 175: further financing cases
163    Meaning of “connected” in section 159
Application of OECD principles
164    Part to be interpreted in accordance with OECD principles
Chapter 3
Exemptions from basic rule
165    Exemption for dormant companies
166    Exemption for small and medium-sized enterprises
167    Small and medium-sized enterprises: exceptions from exemption
168    Medium-sized enterprises: exception from exemption: transfer pricing notice
169    Giving of transfer pricing notices
170    Appeals against transfer pricing notices
171    Tax returns where transfer pricing notice given
172    Meaning of “small enterprise” and “medium-sized enterprise”
173    Meaning of “qualifying territory” and “non-qualifying territory”
Chapter 4
Position, if only one affected person potentially advantaged, of other
affected person
Claim by affected person who is not advantaged
174    Claim by the affected person who is not potentially advantaged
Taxation (International and Other Provisions) Bill viii
175    Claims under section 174 where actual provision relates to a security
176    Claims under section 174: advantaged person must have made return
177    Time for making, or amending, claim under section 174
178    Meaning of “return” in sections 176 and 177
Claims: special cases
179    Compensating payment if advantaged person is controlled foreign company
180    Application of section 174(2)(a) in relation to transfers of trading stock etc
Alternative way of claiming if a security is involved
181    Section 182 applies to claims where actual provision relates to a security
182    Making of section 182 claims
183    Giving effect to section 182 claims
184    Amending a section 182 claim if it is followed by relevant notice
Notification to persons who may be disadvantaged
185    Notice to potential claimants
186    Extending claim period if notice under section 185 not given or given late
Treatment of interest where claim made
187    Tax treatment if actual interest exceeds arm’s length interest
Adjustment of double taxation relief where claim made
188    Double taxation relief by way of credit for foreign tax
189    Double taxation relief by way of deduction for foreign tax
Interpretation of Chapter
190    Meaning of “relevant notice”
Chapter 5
Position of guarantor of affected person’s liabilities under a security issued by
the person
191    When sections 192 to 194 apply
192    Attribution to guarantor company of things done by issuing company
193    Interaction between claims under sections 174 and 192(1)
194    Claims under section 192(1): general provisions
Chapter 6
Balancing payments
195    Qualifying conditions for purposes of section 196
196    Balancing payments between affected persons: no charge to, or relief from,
tax
197    Qualifying conditions for purposes of section 198
198    Balancing payments by guarantor to issuer: no charge to, or relief from, tax
Taxation (International and Other Provisions) Bill ix
199    Pre-conditions for making election under section 200
200    Election to pay tax rather than make balancing payments
201    Pre-conditions for making election under section 202
202    Election, in guarantee case, to pay tax rather than make balancing payments
203    Elections under section 200 or 202
204    Meaning of “capital market condition” in sections 199 and 201
Chapter 7
Oil-related ring-fence trades
205    Provision made or imposed between ring-fence trade and other activities
206    Meaning of “oil-related ring-fence trade” in sections 205 and 218
Chapter 8
Supplementary provisions and interpretation of Part
Unit trusts
207    Application of Part to unit trusts
Determinations requiring Commissioners’ sanction
208    The determinations which require the Commissioners’ sanction
209    Determinations exempt from requirement for Commissioners’ sanction
210    The requirement for the Commissioners’ sanction
211    Restriction of right to appeal against Commissioners’ approval
Appeals
212    Appeals
Effect of Part on capital allowances and chargeable gains
213    Capital allowances
214    Chargeable gains
Adjustments
215    Manner of making adjustments to give effect to Part
Definitions
216    Meaning of “the relevant activities”
217    Meaning of “control” and “firm”
Part 5
Advance pricing agreements
218    Meaning of “advance pricing agreement”
219    Meaning of “associate” in section 218(2)(e)
220    Effect of agreement on party to it
Taxation (International and Other Provisions) Bill x
221    Effect of revocation of agreement or breach of its conditions
222    Effect of agreement on non-parties
223    Application for agreement
224    Provision in agreement about years ended or begun before agreement made
225    Modification and revocation of agreement
226    Annulment of agreement for misrepresentation
227    Penalty for misrepresentation in connection with agreement
228    Party to agreement: duty to provide information
229    Modifications of agreement for double taxation purposes
230    Interpretation of Part: meaning of “Commissioners” and “officer”
Part 6
Tax arbitrage
Introduction
231    Overview
Deduction notices
232    Deduction notices
233    The deduction scheme conditions
234    Schemes achieving UK tax advantage for a company
235    Further provisions about deduction notices
Deduction schemes
236    Schemes involving hybrid entities
237    Instruments of alterable character
238    Shares subject to conversion
239    Securities subject to conversion
240    Debt instruments treated as equity
241    Scheme including issue of shares not conferring qualifying beneficial
entitlement
242    Scheme including transfer of rights under a security
Consequences of deduction notices
243    Consequences of deduction notices
244    The rule against double deduction
245    Application of the rule against deduction for untaxable payments
246    Cases where payee’s non-liability treated as not a result of scheme
247    Cases where payee treated as having reduced liability as a result of scheme
248    The rule against deduction for untaxable payments
Receipt notices
249    Receipt notices
250    The receipt scheme conditions
251    Amounts within corporation tax
252    Further provisions about receipt notices
253    Exception for dealers
254    Rule for calculation or recalculation of income etc following receipt notice
Taxation (International and Other Provisions) Bill xi
General provisions about deduction notices and receipt notices
255    Notices given before tax return made
256    Notices given after tax return made
257    Amendments, closure notices and discovery assessments where section 256
applies
Interpretation
258    Schemes and series of transactions
259    Minor definitions
Part 7
Tax treatment of financing costs and income
Chapter 1
Introduction
260    Introduction
Chapter 2
Application of Part
261    Application of Part
262    UK net debt of worldwide group for period of account of worldwide group
263    Net debt of a company
264    Worldwide gross debt of worldwide group for period of account of the group
265    References to amounts disclosed in balance sheet of relevant group company
266    Qualifying financial services groups
267    Qualifying activities
268    Lending activities and activities ancillary to lending activities
269    Insurance activities and insurance-related activities
270    Relevant dealing in financial instruments
271    UK trading income of the worldwide group
272    Worldwide trading income of the worldwide group
273    Foreign currency accounting
Chapter 3
Disallowance of deductions
274    Application of Chapter and meaning of “total disallowed amount”
275    Meaning of “company to which this Chapter applies”
276    Appointment of authorised company for relevant period of account
277    Meaning of “the reporting body”
278    Statement of allocated disallowances: submission
279    Statement of allocated disallowances: submission of revised statement
280    Statement of allocated disallowances: requirements
281    Statement of allocated disallowances: effect
282    Company tax returns
283    Power to make regulations about statement of allocated disallowances
284    Failure of reporting body to submit statement of allocated disallowances
Taxation (International and Other Provisions) Bill xii
285    Powers to make regulations in relation to reductions under section 284
Chapter 4
Exemption of financing income
286    Application of Chapter and meaning of “total disallowed amount”
287    Meaning of “company to which this Chapter applies”
288    Appointment of authorised company for relevant period of account
289    Meaning of “the reporting body”
290    Statement of allocated exemptions: submission
291    Statement of allocated exemptions: submission of revised statement
292    Statement of allocated exemptions: requirements
293    Statement of allocated exemptions: effect
294    Company tax returns
295    Power to make regulations about statement of allocated exemptions
296    Failure of reporting body to submit statement of allocated exemptions
297    Power to make regulations in relation to reductions under section 296
298    Balancing payments between group companies: no tax charge or relief
Chapter 5
Intra-group financing income where payer denied deduction
299    Tax exemption for certain financing income received from EEA companies
300    Meaning of “relevant associate”
301    Meaning of “tax-resident” and “EEA territory”
302    Qualifying EEA tax relief for payment in current or previous period
303    Qualifying EEA tax relief for payment in future period
304    References to tax of a territory
305    Financing income amounts of a company
Chapter 6
Tax avoidance
306    Schemes involving manipulation of rules in Chapter 2
307    Schemes involving manipulation of rules in Chapters 3 and 4
308    Meaning of “relevant net deduction”
309    Calculation of amounts
310    Meaning of “carried-back amount” and “carried-forward amount”
311    Schemes involving manipulation of rules in Chapter 5
312    Meaning of “scheme” and “excluded scheme”
Chapter 7
“Financing expense amount” and “financing income amount”
313    The financing expense amounts of a company
314    The financing income amounts of a company
315    Interpretation of sections 313 and 314
316    Group treasury companies
317    Real estate investment trusts
318    Companies engaged in oil extraction activities

© Parliamentary copyright 2009	Revised 19 November 2009

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