Section 18I — Corporation Tax Act 2009: Exemptions from anti-diversion rule

Exemptions from anti-diversion rule 18I 1 The exemptions referred to in section 18G(1)(c) are the exemptions set out in Chapters 11 to 14 of Part 9A of TIOPA 2010 (controlled foreign companies: exemptions from the CFC charge).

2 In applying those Chapters for the purposes of section 18G(1)(c)—

a references to section 371BA(2)(b) of TIOPA 2010 are to be read as references to section 18G(1)(c),

b the assumptions set out in subsection (3) are to be made, and c section 371VF(3) of TIOPA 2010 (definition of “related” person) is to be read with the omission of paragraphs (b) and (c).

3 For the purposes of subsection (2)(b), assume—

a that the permanent establishment which company X has in territory X is a separate company from company X, b that the separate company is a CFC resident in territory X, c that period X and company X's other accounting periods for corporation tax purposes are accounting periods of the CFC for the purposes of Part 9A of TIOPA 2010, d that the CFC's assumed total profits for period X are the adjusted relevant profits amount, e that the CFC's assumed taxable total profits for period X are the same as the CFC's assumed total profits for period X, f that the CFC is connected with company X and is also connected or associated with any person with whom company X is connected or associated, and g that any person who has an interest in company X also has an interest in the CFC.

4 Chapters 11 to 14 of Part 9A of TIOPA 2010 are also to be applied subject to sections 18IA to 18ID below.