Section 581A
9After section 581 insert—
“581AAvoidance arrangements
(1)A manufactured overseas dividend is not deductible if it (or any part of it) is made directly or indirectly in consequence of, or otherwise in connection with, avoidance arrangements.
(2)For the purposes of subsection (1) an amount is deductible if it is—
(a)deductible in calculating any of the payer’s profits or gains for income tax purposes, or
(b)deductible for those purposes in calculating the net income of the payer.”