Income and Corporation Taxes Act 1988 (c. 1)

SCHEDULES

Valid from 10/07/2003

SCHEDULE A1 U.K. Determination of profits attributable to permanent establishment: supplementary provisions

Part 2 U.K. General provisions

Provision of goods or services for permanent establishment U.K.

6 (1) This paragraph applies where the non-resident company provides the permanent establishment with goods or services.

(2) If the goods or services are of a kind that the company supplies, in the ordinary course of its business, to third parties dealing with it at arm’s length, the matter is dealt with as a transaction to which the separate enterprise principle applies.

(3) If not, the matter is dealt with as an expense incurred by the non-resident company for the purposes of the permanent establishment.