CIRD48110 - Intangible assets: avoidance: tax-driven transactions: outline of provision

CTA09/S864

CTA09/S864 is aimed at 바카라 사이트˜tax avoidance arrangements바카라 사이트™. That is to say arrangements which, as their main object or one of their main objects, enable a company:

  • to obtain greater deductible debits under CTA09/PART8 than would otherwise have been due,
  • to reduce the amount of the taxable credits brought into account under CTA09/PART8.

Until 20 June 2003, CTA09/S864 (then enacted as FA02/SCH29/PARA111) had a more restricted scope - see CIRD48230.

바카라 사이트˜Arrangements바카라 사이트™ are defined in broad terms to include 바카라 사이트˜any scheme, agreement or understanding, whether or not legally enforceable바카라 사이트™.

Where tax avoidance arrangements, as defined, are found to exist they are to be disregarded for the purposes of CTA09/PART8.

Points to note

  • 바카라 사이트˜Object바카라 사이트™ in this context carries essentially the same meaning as 바카라 사이트˜purpose바카라 사이트™. The purpose of arrangements is the purpose in the minds of the people involved in them. In that sense, the concept is subjective. The purpose cannot simply be equated with the effect of transactions. Equally, however, purpose is not simply determined by the assertion of those involved. All the evidence has to be considered, including the surrounding circumstances including the effect of the transactions. See BIM42100 onwards.
  • Whether tax avoidance (as defined) is a main purpose of a transaction etc is discussed in CIRD48130.