SCHEDULE 19Large businesses: tax strategies and sanctions
PART 1Interpretation
“Group” and related expressions
6
(1)
“Group” means two or more relevant bodies which together constitute—
(a)
an MNE Group (see paragraph 7), or
(b)
a group other than an MNE group (see paragraph 8).
(2)
“UK group” means a group whose head is a relevant body incorporated in the United Kingdom.
(3)
“Foreign group” means a group whose head is a foreign relevant body.
(4)
For the purposes of sub-paragraphs (2) and (3) it is immaterial where other members of the group are incorporated.
7
(1)
“MNE Group” has the same meaning (subject to sub-paragraph (2) below) as in the OECD Model Legislation in the OECD Country-by-Country Reporting Implementation Package as contained in the OECD's Guidance on Transfer Pricing Documentation and Country-by-Country Reporting published in 2014.
(2)
Paragraph (ii) (excluded MNE Group) of the Implementation Package is not part of the definition applied by sub-paragraph (1) above for the purposes of this Schedule.
(3)
In sub-paragraph (1) “OECD” means the Organisation for Economic Co-operation and Development.
8
(1)
A “group other than an MNE group” means a group consisting of two or more relevant bodies—
(a)
each of which is a member of the group by virtue of sub-paragraph (3) or (4),
(b)
at least two of which are UK companies,
which is not an MNE Group.
(2)
For the purposes of the condition in sub-paragraph (1)(b) a UK permanent establishment of a foreign member of a group is to be treated as if it were a UK company and a member of the group.
(3)
A relevant body is a member of a group if—
(a)
another relevant body is its 51% subsidiary, or
(b)
it is a 51% subsidiary of another relevant body.
(4)
Two relevant bodies are members of the same group if—
(a)
one is a 51% subsidiary of the other, or
(b)
both are 51% subsidiaries of another relevant body.
(5)
Chapter 3 of Part 24 of CTA 2010 (meaning of 51% subsidiary) applies for the purposes of this Schedule as it applies for the purposes of the Corporation Tax Acts (but with the modification in sub-paragraph (6)).
(6)
It applies as if references to a body corporate were references to a relevant body.
9
A group is headed by whichever relevant body within the group is not a 51% subsidiary of another relevant body within the group (and “head”, in relation to the group, means that body).