F1PART 9AControlled foreign companies

Annotations:
Amendments (Textual)
F1

Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)

C1Chapter 4The CFC charge gateway: profits attributable to UK activities

Annotations:
Modifications etc. (not altering text)
C1

Pt. 9A Ch. 4 applied (with modifications) by 2009 c. 4, s. 18HB (as substituted (with effect in accordance with Sch. 20 para. 55(2) of the amending Act) by Finance Act 2012 (c. 14), Sch. 20 para. 6)

371DAIntroduction to Chapter

1

Take the steps set out in section 371DB(1) to determine the CFC's profits falling within this Chapter for the purposes of step 2 in section 371BB(1) (the CFC charge gateway).

2

In this Chapter references to the CFC's assumed total profits are to those profits excluding its non-trading finance profits and property business profits (if any).

3

For the purposes of this Chapter—

a

“the OECD Report” means the Report on the Attribution of Profits to Permanent Establishments of the Organisation for Economic Co-operation and Development (“OECD”) dated 22 July 2010,

b

terms used which are also used in the OECD Report have the same meaning as they have in the OECD Report,

c

“the CFC group” means the CFC taken together with the companies with which it is connected as those companies may change from time to time,

d

“the provisional Chapter 4 profits” has the meaning given at step 7 in section 371DB(1),

e

“the relevant assets and risks” has the meaning given at step 1 in section 371DB(1), subject to any exclusions at step 2 or 6,

f

“SPF” means a significant people function or a key entrepreneurial risk-taking function,

g

an SPF is a “UK SPF” so far as the SPF is carried out in the United Kingdom—

i

by the CFC, otherwise than through a UK permanent establishment, or

ii

by a company connected with the CFC, and

h

an SPF is a “non-UK SPF” so far as it is not a UK SPF.

4

The Treasury may by regulations amend this Chapter as they consider appropriate to take account of any relevant document published by OECD from time to time.

5

“Relevant document” means—

a

a document which replaces, updates or supplements the report mentioned in subsection (3)(a), or

b

a document which replaces, updates or supplements a document falling within paragraph (a) or a document which is a relevant document by virtue of this paragraph.