INTM286060 - Foreign Permanent Establishments of UK Companies: anti-diversion rule: proportionate reduction where motive test not met
This applies for relevant periods beginning before 1 January 2013.
CTA09/S18I
CTA09/S18I is in point where condition B of the motive test is met (which should be the case where there has been no major change to the business over the relevant period), but condition A is not. In those cases the provision permits a just and reasonable reduction, calculated by reference to the 바카라 사이트śtainted transactions바카라 사이트ť within condition A, to the relevant profits amount.
For the purposes of S18I, tainted transactions are those which achieve a reduction in UK tax and do not meet the condition in S18H(2)(b).